Taxpayers Often Have to Decide Between Contributing to a Traditional

question 53

Multiple Choice

Taxpayers often have to decide between contributing to a traditional deductible IRA or a Roth IRA.In making the comparison between the two IRAs,which models should the taxpayer use?

• A) \(\begin{array}{|l|l|}
• \hline\text { Traditional } IRA& \text { Roth IRA } \\
• \hline \text { Deferred Model } & \text { Pension Model }\\\hline
• \end{array}\)
• B) \(\begin{array}{|l|l|}
• \hline\text { Traditional } IRA& \text { Roth IRA } \\
• \hline \text { Exempt Model } & \text { Deferred Model }\\\hline
• \end{array}\)
• C) \(\begin{array}{|l|l|}
• \hline\text { Traditional } IRA& \text { Roth IRA } \\
• \hline \text { Pension Model } & \text { Deferred Model }\\\hline
• \end{array}\)
• D) \[\begin{array} {| l | l |}
• \hline\text { Traditional IRA } & \text { Roth IRA } \\
• \hline \text { Pension Model } & \text { Exempt Model } \\
• \hline
• \end{array}\]

Recognize the importance of proper journal entries in capturing transactions related to liabilities and contingencies.

Understand the components and classification of fixed assets.

Recognize the importance and components of capital and revenue expenditures.

Comprehend the concept and process of depreciation, including methods and calculations.

---

Definitions:

Latin America

A region in the Americas where Romance languages (primarily Spanish and Portuguese) are predominantly spoken, encompassing much of Central and South America and parts of the Caribbean.

Compromise of 1850

A package of five bills passed in the United States in 1850 aimed at defusing political confrontations between slave and free states regarding territories acquired in the Mexican-American War.

Popular Sovereignty

The principle that the authority of a state and its government is created and sustained by the consent of its people, through their elected representatives.

Fugitive Slave Law

Legislation passed in the United States that required the capture and return of runaway slaves.