Question
. Emily, Jack, and Colin are owners in their family businessWater Solutions, LLC. Emily and Jack are married and Colin is their 25-year-old son. The
. Emily, Jack, and Colin are owners in their family businessWater Solutions, LLC. Emily and Jack are married and Colin is their 25-year-old son. The employee census information is in the chart below. What is the most that could be contributed to a profit sharing plan and deducted by Water Solutions, LLC if they established a profit sharing plan (ignoring any issues with salary deferrals)?
| Employee | Ownership | Salary | Deferral Plan | Balance | Status |
| Emily | 30 | $330,000 | $20,000 | $400,000 | Officer |
| Jack | 3 | $210,000 | $20,000 | $600,000 |
|
| Colin | 4 | $80,000 | $10,000 | $150,000 |
|
| Dave | 0 | $180,000 | $15,000 | $150,000 | Officer |
| Erin | 0 | $140,000 | $15,000 | $100,000 |
|
| Frank | 0 | $50,000 | $8,000 | $50,000 |
|
| Ginger | 0 | $40,000 | $0 | $10,000 |
|
| Haley | 0 | $30,000 | $2,000 | $30,000 |
|
| Irish | 0 | $20,000 | $1,000 | $10,000 |
|
| Jen | 0 | $20,000 | $0 | $5,000 |
|
|
|
| $1,100,000 | $91,000 | $1,505,000 |
|
$187,500
$252,250
$261,250
$275,000
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The Essential Handbook Of Internal Auditing
Authors: K. H. Spencer Pickett
1st Edition
0470013168, 978-0470013168
