Peter Is a 20-Year Old College Student Who Is Claimed

question 17

Multiple Choice

Peter is a 20-year old college student who is claimed as a dependent on his parents' tax return.Peter's AGI consists of $12,000 interest and dividend income from a trust fund and $4,180 of wages from a part-time job.Compute Peter's maximum IRA contribution:

• A)$0
• B)$3,000
• C)$4,180
• D)$5,500

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Definitions:

Annexation

The act of incorporating a land area into another entity, such as a country or city, often involving a change in political control.

Mexican Territory

Historical lands under the jurisdiction of Mexico, including areas that are now part of the United States following territorial changes.

Mammy

A historical stereotype of a black woman, often depicted as a devoted and submissive servant to white families, particularly in the southern United States.

Plantation Owner

An individual who owns extensive estate used primarily for agricultural production, historically associated with the use of slave labor.