Mr and Mrs

question 103

Multiple Choice

Mr. and Mrs. Lawry, both age 60, each make the maximum contribution to their traditional IRAs. Mr. Lawry is an active participant in a section 401(k) plan, but Mrs. Lawry is not an active participant in any other qualified plan. If their joint AGI before any IRA deduction is $144,900, compute their AGI.

• A) $144,900
• B) $138,900
• C) $137,900
• D) $130,900

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Definitions:

Base

A substance that can accept hydrogen ions (protons) or more generally, donate a pair of valence electrons.

Saponification Reaction

A chemical reaction in which fats or oils react with an alkali to produce soap and glycerol.

Animal Fats

Natural esters derived from fatty acids and glycerol, commonly found in tissues of animals.

NaOH

Sodium hydroxide, a strong base used in various industrial and chemical processes, including soap making and pH adjustment.