In a (tradition/Roth) 401(k), the contributions are tax deductible, and income generated by the account is (tax exempt/tax deferred). In a (tradition/ Roth) 401(k), the contributions are taxable when deposited, but when the money is withdrawn at retirement they are (tax exempt/tax deferred).

On january 1 of the current year, jimmy's sandwich company reported owner's capital totaling $128,000. during the current year, total revenues were $106,000 while total expenses were $95,500. also, during the current year jimmy withdrew $30,000 from the company. no other changes in equity occurred during the year. if, on december 31 of the current year, total assets are $206,000, the change in owner's capital during the year was: