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:

Degree of Care

refers to the level of attention, diligence, and precaution an individual or organization must legally apply in carrying out an action or duty to avoid harm to others.

Expert

An individual with extensive knowledge or skill in a particular area, acquired through education, training, or experience, often called upon for advice or testimony.

Inexperience

The lack of knowledge, understanding, or familiarity in a particular area or activity, often leading to mistakes or suboptimal outcomes.

Common Practice

A standard method or procedure that is widely used or recognized within a particular field or industry.