8.         Best Bookkeepe

8.         Best Bookkeepe

8.         Best Bookkeepers Inc., has decided to adopt a profit-sharing plan that allocates profits in excess of $10,000 to participants in the same ratio that a participant?s salary bears to total compensation. Abel earns $100,000, Baker earns $75,000, and Charlie earns $25,000. They are the plan?s only participants. Best Bookkeepers has a $60,000 profit. How much will be contributed to each of the participants? Show your work.9.         Dick and Jane are married, filing jointly, and have a combined modified AGI of $97,000 in 2013. John is 45 and Mary is 44. John is an active participant in his employer?s 401(k) plan, but Mary is not. What is the amount of the deductible IRA contribution that John and Mary can make for 2013 assuming that both earn more than $7,000?

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