During 2019,Marcia,who Is Single and Is Covered Under a Pension

question 43

Multiple Choice

During 2019,Marcia,who is single and is covered under a pension plan at work,contributes $6,000 into a Roth IRA.If her AGI is $68,000,which of the following is true?

• A)All of the contribution is deductible.
• B)None of the contribution is deductible.
• C)She must withdraw all of the contribution immediately since she is covered under a plan at work.
• D)Only 60% of the contribution is deductible since her AGI exceeds $64,000 by $4,000 and her maximum contribution is phased out by 40%.

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Definitions:

Insurance Expense

The cost incurred by a business to secure insurance coverage against various risks, recorded as a periodic expense.

Factory Building

A structure purposely designed and constructed for manufacturing operations, housing machinery, equipment, and workers.

Product Cost

The total expense incurred to produce a product, inclusive of direct materials, labor, and overhead costs.

Period Costs

Costs not directly associated with the manufacturing process, recognized in the accounting period they arise.