Kathy is 60 years of age and self-employed. During 2016 she reported $105,000 of revenues and $41,000 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to a simplified employee pension (SEP) IRA for 2016?

$11,896.

$16,657.

$59,500.

$53,500.