Kay, a Single Individual, Participates in Her Employer's SIMPLE §

Multiple Choice

Kay, a single individual, participates in her employer's SIMPLE § 401(k) plan.The plan permits participants to contribute a percentage of their salary.Kay elects to contribute 5% of her annual salary of $111,000 to the plan.On what amount of her salary does Kay pay income taxes in 2012?

A) $5,550.
B) $11,500.
C) $105,450.
D) $111,000.
E) None of above.