In 2014,Jindal Corporation paid compensation of $42,300 to the participants in a profit sharing plan and then contributed $12,800 to the plan.Jindal's deductible amount and any contribution carryover are as follows:

Question

Quizplus · Accepted Answer

The limitation for Jindal Corporation is $10,575 (25% × $42,300),and the contribution carryover to 2015 and subsequent years is $2,225 ($12,800 - $10,575).

In 2014,Jindal Corporation Paid Compensation of $42,300 to the Participants