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George, age 60, is a member of We Work, LLC. We Work sponsors a profit sharing plan. Georges portion of the net income was $200,000
George, age 60, is a member of We Work, LLC. We Work sponsors a profit sharing plan. Georges portion of the net income was $200,000 and one-half of his self employment taxes were $8,258 for this year. If We Work makes a 25% of salary contribution on behalf of all of its employees to the profit sharing plan, how much is the contribution to the profit sharing plan on behalf of George? (a) $38,348. (b) $42,000. (c) $47,935. (d) $50,000.
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