Escobar and Rose Are Both Age 36 and File a Joint

question 90

Multiple Choice

Escobar and Rose are both age 36 and file a joint return.Neither is covered under an employer plan.Escobar earned $121,000 of compensation in 2014.Rose worked part-time and earned $1,200.What is the maximum deductible IRA contribution they can make in 2014?

• A) $0.
• B) $5,500.
• C) $6,700.
• D) $11,000.

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Definitions:

Bond Coupon Rates

The interest rate provided by a bond each year, shown as a percentage of the bond's nominal value.

Minimum TIE

The lowest acceptable Times Interest Earned ratio, a financial metric used to determine how well a company can meet its interest payments on debt.

Restrictive Covenant

A clause in a contract that limits certain actions of the parties involved, often used in employment and real estate agreements.

Amortized Debt

A loan in which the principal and interest are paid off in equal installments over a predetermined period.