Clarisse's Filing Status Is Head of Household

question 32

Essay

Clarisse's filing status is head of household.She has modified adjusted gross income of $29,000 and she made a $2,000 contribution to her IRA.What is the amount of her retirement savings contributions credit?

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Definitions:

Unit Of Measure

A standard quantity used to express an amount of a physical property, financial item, or activity, facilitating comparisons and calculations.

Economic Entity Assumption

An accounting principle that separates the transactions of a business from those of its owners or other businesses.

Cost Principle

The accounting principle that states goods and services should be recorded at their cost at the time of acquisition.

Historical Cost Principle

An accounting principle that requires assets to be recorded and reported at their purchase price, without adjustments for inflation or market value changes.