Arturo and Josephina Are Married with Salaries of $47,000 and $48,000,respectively.Their

question 148

Short Answer

Arturo and Josephina are married with salaries of $47,000 and $48,000,respectively.Their combined AGI is $100,000.Josephina is an active participant in her company's qualified pension plan while Arturo is not.Determine Arturo and Josephina's combined IRA contribution and deduction amounts?
$\begin{array}{lll} &\text { Maximum }&\text { Maximum }\\& \text { Contribution } & \text { Deduction } \\\text { a. } &\$ 5,500 & \$ 2,750 \\\text { b. }& \$ 11,000 & \$ 2,750 \\\text { c. } &\$ 11,000 & \$ 5,500 \\\text { d. }& \$ 11,000 & \$ 9,625 \\\text { e. }& \$ 11,000 & \$ 11,000\end{array}$

---

Definitions:

Total Utility

The total satisfaction or benefit a consumer receives from consuming a particular quantity of a good or service.

Salsa

a spicy sauce of tomatoes, onions, and chili peppers commonly used in Latin American cuisine.

Marginal Utility

The incremental enjoyment or advantage a consumer receives from consuming one more unit of a good or service.

Macaroni and Cheese

A popular dish made with macaroni pasta and a cheese-based sauce, often baked or otherwise prepared as comfort food.