FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Which of the following profit sharing allocation options provides for a combination of age and compensation to allocate the contributions?
- Standard
- Social Security Integration
- Age-Based Profit Sharing
Select one:
1 only
3 only
2 and 3
1, 2, and 3
Expert Solution
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Step 1
Answer:-
Profit sharing allocation meaning:- A profit sharing allocation plan is a defined contribution plan that enables the employer, to decide whether or not to make a payment each year. The decision is obviously influenced by the profit of the year and in the past, employers could only contribute form net profits.
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