Marshall and Michelle Are Married with Salaries of $80,000 and $64,000,respectively.Their

question 26

Short Answer

Marshall and Michelle are married with salaries of $80,000 and $64,000,respectively.Their combined AGI is $178,000.Michelle is an active participant in her company's qualified pension plan while Marshall is not.Determine the maximum combined IRA contribution and deduction amounts?
$$\begin{array} { c c c } & \begin{array} { c } \text { Maximum } \\\text { Contribution }\end{array} & \begin{array} { c } \text { Maximum } \\\text { Deduction }\end{array} \\ \text { a. } & \$ 5,500 & \$ 2,750 \\\text { b. } & \$ 11,000 & \$ 5,500 \\\text { c. } & \$ 5,500 & \$ 5,500 \\\text { d. } & \$ 11,000 & \$ 7,500 \\\text { e. } & \$ 11,000 & \$ 11,000\end{array}$$

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Definitions:

Buying Habits

Patterns or tendencies that consumers exhibit when making purchasing decisions.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating its financial health over a specific period.

Lower-of-Cost-Or-Market

An accounting principle that dictates inventory should be recorded at either its historical cost or its current market price, whichever is lower.