Chee Is a Key Employee of an H

Essay

Chee is a key employee of an H.R 10 (Keogh)defined contribution plan (a profit sharing plan)created by a partnership.Answer each of the following independent questions.
a.During 2016,$7,400 is contributed to the H.R.10 plan for Chee.What amount is deductible if Chee's earned income is $45,000 (after the deduction for one-half of self employment tax)?
b.In 2016,$8,020 is contributed to the H.R.10 (Keogh)plan on Chee's behalf.If Chee's earned income is $36,000 (after the deduction for one-half of self employment tax),what deduction,if any is allowed?
c.The partnership had a bad year in 2016,and only $820 was contributed to the H.R.10 plan on Chee's behalf.Chee earned only $700 during 2015.Calculate Chee's allowable deduction.