Jake Invested $800 in an IRA

question 53

Multiple Choice

Jake invested $800 in an IRA.If he has a 15 percent marginal tax rate and the contribution is tax deductible,Jake will

• A)pay $120 more in taxes.
• B)pay $120 less in taxes.
• C)receive no change to his tax liability.
• D)have $800 more in adjusted gross income.

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Definitions:

System Software

The set of programs that enables a computer’s hardware devices and application software to work together; it includes the operating system and utility programs.

Operating System

Software that manages computer hardware and software resources and provides common services for computer programs.

Trash

A receptacle or area designated for the disposal of waste materials.

Windows Utility Program

A software tool provided by the Windows operating system to perform maintenance, configuration, and monitoring tasks.