Mike is a manager with Bay Electronics, and his salary during the year was $160,000. Bay sponsors a profit sharing plan in which the company contributes 7% of the employee’s salary and integrates with Social Security. How much will Bay Electronics be able to contribute into MIke's account, if the Social Security wage base last year was $127,200 and the excess rate is the base rate plus 5.7% (i.e., permitted contribution for maximum disparity)?
$13,069.60
$16,154.40
$15,251.40
$10,773.60
$20,320.00