I have (1) question needing assistance. Must show work.

Problem 13-77 (LO 13-5)

Hope is a self-employed taxpayer who turns 54 years old at the end of the year (2015). In 2015, her net Schedule C income was $120,000. This was her only source of income. This year, Hope is considering setting up a retirement plan. Must show work for each answer

What is the maximum amount Hope may contribute to the self-employed plan in each of the following situations?

a.

She sets up a SEP IRA.

Maximum contribution______________

b.

She sets up an individual 401(k).

Maximum contribution______________