Flashcards: Taxable Income

The following year-1 annual report was received by Clark from the qualified defined contribution plan provided by Clark's employer:

  • Beginning balance: $12,700
  • Employer contribution: 600
  • Plan earnings: 250
  • Ending balance: $13,550

What income must be included in Clark's gross income for year 1?

$850

$600

$0

$250

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