H (Age 50)and W (Age 48)are Married but Only W

question 101

Multiple Choice

H (age 50) and W (age 48) are married but only W is employed.She is not covered by a retirement plan at work.She earns $75,000 during the year and they have combined AGI of $78,000 before any IRA contribution.In 2013,the maximum amount together they may contribute to tax deductible IRAs is

• A)$5,500.
• B)$6,500.
• C)$11,000.
• D)$12,000.

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Definitions:

Slide

The error that results in adding or deleting zeros in the writing of a number. Example: 79,200 → 7,920.

Error

A mistake or inaccuracy in financial records or calculations.

Trial Balance

A bookkeeping report that lists the balances of all ledgers' accounts in two columns, debit and credit, to ensure that entries in a company’s bookkeeping system are mathematically correct.

Ledger

A comprehensive collection of all the accounts of a company, showing transactions and resulting balances.