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Amber's employer, Lavender, Inc., uses a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old. a. What is the maximum amount Amber can elect for salary deferral treatment for 2022? b. If Amber elects salary deferral treatment for the above amount, how much can she save in Federal income taxes? er tax liability for 2022 would be reduced by $ c. What is the recommended amount that Amber should elect as salary deferral treatment for 2022, considering only the Federal income tax effects?

Amber's employer, Lavender, Inc., uses a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old. a. What is the maximum amount Amber can elect for salary deferral treatment for 2022? b. If Amber elects salary deferral treatment for the above amount, how much can she save in Federal income taxes? er tax liability for 2022 would be reduced by $ c. What is the recommended amount that Amber should elect as salary deferral treatment for 2022, considering only the Federal income tax effects?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Amber's employer, Lavender, Inc., uses a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old. a. What is the maximum amount Amber can elect for salary deferral treatment for 2022? b. If Amber elects salary deferral treatment for the above amount, how much can she save in Federal income taxes? Ner tax liability for 2022 would be reduced by $ c. What is the recommended amount that Amber should elect as salary deferral treatment for 2022, considering only the Federal income tax effects?
Transcribed Image Text:Amber's employer, Lavender, Inc., uses a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old. a. What is the maximum amount Amber can elect for salary deferral treatment for 2022? b. If Amber elects salary deferral treatment for the above amount, how much can she save in Federal income taxes? Ner tax liability for 2022 would be reduced by $ c. What is the recommended amount that Amber should elect as salary deferral treatment for 2022, considering only the Federal income tax effects?
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