Which of the Following Taxpayers Qualifies for the Maximum Individual

question 6

Multiple Choice

Which of the following taxpayers qualifies for the maximum individual retirement account deduction for 2015?

• A)Married taxpayers, neither of whom is covered by a qualified retirement plan, with total adjusted gross income, all earned, of $85,000
• B)A single taxpayer, who is covered by a qualified retirement plan, with adjusted gross income of $80,000
• C)A single taxpayer, who is not covered by a qualified retirement plan, with no earned income but with unearned income of $12,000
• D)Married taxpayers, only one of whom is covered by a qualified retirement plan, with total adjusted gross income of $190,000
• E)None of the above qualify for the maximum deduction

Understand the composition of a balance sheet and how to prepare one.

Analyze transactions to determine their impact on the accounting equation.

Calculate net income, ending owner's equity, and total assets based on given data.

Differentiate between income statement, balance sheet, and owner's equity statement items.

---

Definitions:

Unilateral Contract

A contract in which one party promises to perform a specific action in return for a performance, not a promise, by the other party.

Consideration

Consideration in contract law refers to something of value exchanged between parties as part of an agreement.

Illusory Promise

A statement that appears to be a promise but does not actually bind the party to any obligation, making it unenforceable as a contract.

Liquidated Debt

A debt or claim whose precise monetary value has been determined, acknowledged, or agreed upon by all involved parties.