4-11A • LO 1See Figure 4.3 on page 4-9, Example 4-1 on page 4-8George Clausen (age 48) is employed by Kline Company and is paid a salary of $42,640. He has just decided to jointhe company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen:a. What is the maximum that he can contribute into this retirement fund?2$b. What would be the company's contribution?2$c. What would be his weekly take-home pay with the retirement contributiondeducted (married filing jointly, wage-bracket method, and a 2.3% state incometax on total wages)?2$d. What would be his weekly take-home pay without the retirement contributiondeduction?

Retirement fund refers to a different kind of fund under which an individual pays more money in the…

George Clausen (age 48) is employed by Kline Company and is paid a salary of S42,640. He has just decided to joir the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen: a. What is the maximum that he can contribute into this retirement fund? b. What would be the company's contribution? c. What would be his weekly take-home pay with the retirement contribution deducted (married filing jointly, wage-bracket method, and a 2.3% state income tax on total wages)? d. What would be his weekly take-home pay without the retirement contribution

George Clausen (age 48) is employed by Kline Company and is paid a salary of S42,640. He has just decided to joir the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen: a. What is the maximum that he can contribute into this retirement fund? b. What would be the company's contribution? c. What would be his weekly take-home pay with the retirement contribution deducted (married filing jointly, wage-bracket method, and a 2.3% state income tax on total wages)? d. What would be his weekly take-home pay without the retirement contribution

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 2FPE

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George Clausen (age 48) is employed by Kline Company and is paid an annual salary of $42,640. He has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen: a. What is the maximum that he can contribute into this retirement fund? $ 12,500 ✓ b. What would be the company's contribution? $ X Note: For items c. & d. below, round interim amounts two decimal places. Use these values in subsequent computations then round final answer to two decimal places. c. What would be his weekly take-home if he contributes the maximum allowed retirement contribution (married, allowances, wage-bracket method, and a 2.3 % state income tax on total wages)? Click here to access the Wage-Bracket Method Tables. $ X d. What would be his weekly take-home pay without the retirement contribution deduction? X
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