Ken is a self-employed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of whom have worked for Ken full-time for the last four years. The office assistant earns $30000 per year and each drafter earns $40000. Kens new earning from self-employment (after deducting all expenses and one-half of self-employment taxes) are $305000. Ken is considering whether to establish a SEP plan and has a few questions: A] Is he eligible to establish an SEP plan? B] Is he required to cover his employees under the plan? Why or Why not? C] If his employees must be covered, what is the maximum amount that can be contributed on their behalf? D] If the employees are not covered, what is the maximum amount Ken can contribute for himself? E] If Ken is required to contribute for his employees and chooses to contribute the maximum amount, what is the maximum amount Ken can contribute for himself? (Hint Calculate the employee amounts first.) Ignore any changes in Kens self-employment tax.