Sarah is vice president of production for Fenner, Inc., a corporation, whichmaintains a money purchase pension plan

Question:

Sarah is vice president of production for Fenner, Inc., a corporation, whichmaintains a money purchase pension plan for its employees. She owns 8% of Fenner’s stock. Determine the maximum deductible contribution the company can make to the pension plan in each of the following situations:
a. Sarah’s salary is $95,000.
b. Sarah’s salary is $260,000.