Mr and Mrs

question 51

Multiple Choice

Mr. and Mrs. Alexander, ages 43 and 44, each earn substantial salaries but do not participate in any type of employer-sponsored qualified retirement plan. Which of the following is true?

• A) The couple can each contribute $6,000 to a traditional IRA and take an $12,000 itemized deduction on their joint Form 1040.
• B) The couple can each contribute $6,000 to a traditional IRA and take an $12,000 above-the-line deduction on their joint Form 1040.
• C) The couple can each contribute $3,000 to a traditional IRA and take a $6,000 above-the-line deduction on their joint Form 1040.
• D) The couple can each contribute $3,000 to a traditional IRA and take a $6,000 itemized deduction on their joint Form 1040.

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Definitions:

Implied Warranty of Title

A legal assumption that a seller has the right to sell a property and that the buyer will not face legal disputes over the title.

Warranty Disclaimers

Statements that limit or exclude the seller's liability for certain defects or failures in products or services.

Stolen Goods

Items that have been taken without permission or legal right, typically with the intent to keep or sell them.

Implied Warranty of Fitness

A legal assumption that a sold good or service is suitable for a particular purpose, as might reasonably be inferred by the buyer from the nature of the product or service.