Ms Knox, Age 34 and Single, Has $124,800 AGI, $108,200

question 55

Multiple Choice

Ms. Knox, age 34 and single, has $124,800 AGI, $108,200 of which is compensation income. Compute her maximum contribution to her Roth IRA.

• A) $0
• B) $2,640
• C) $2,860
• D) $5,500

---

Definitions:

Limited Liability

A legal status where a person's financial responsibility is limited to a fixed amount, usually the value of their investment in a company or partnership.

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, resulting in injury or harm that constitutes the basis for a claim by the injured party.

Vicariously Liable

Legal responsibility of one party for the actions of another party, typically in an employer-employee relationship.

Formal Steps

Formal steps are specific procedures required by law or regulation to complete a legal action or process.