Benjamin and Ester File a Joint Return and Have AGI

question 19

Multiple Choice

Benjamin and Ester file a joint return and have AGI of $165,000.Both are active participants in their employer's pension plan.They have one child,Emily,who is age 8.Emily's grandparents contributed $1,000 to a Coverdell Education Savings Account for Emily in 2017.What is the maximum permitted Coverdell Education Savings Account contribution that Benjamin and Ester can make in 2017?

• A)$0.
• B)$1,000.
• C)$2,000.
• D)$5,500.

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Definitions:

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, which allows for the assets of the debtor to be measured and evaluated, and the liabilities to be discharged or restructured under the protection of bankruptcy court.

Loan Agreement

A contract between a borrower and a lender outlining the terms and conditions of a loan.

Bankruptcy Defense

Strategies or legal arguments used by a defendant in litigation to counter claims made in the context of a bankruptcy case.

Suretyship Agreement

An agreement in which one party (the surety) guarantees the debt of a borrower to a lender, agreeing to repay the debt should the borrower default.