Mark and Cindy Are Married with Salaries of $45,000 and $42,000,respectively.Adjusted

question 96

Multiple Choice

Mark and Cindy are married with salaries of $45,000 and $42,000,respectively.Adjusted gross income on their jointly filed tax return is $99,000.Both individuals are active participants in employer provided qualified pension plans.What is the maximum amount each person may deduct for AGI with regard to IRA contributions?
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Mark Cindy

• A)$1,000 $1,000
• B)$5,225 $5,225
• C)$3,200 $3,200
• D)$- 0 - $-0-
• E)$ 5,500 $5,500

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Definitions:

Cash-Settled Contract

A financial agreement where the difference in the value of a contract is exchanged in cash rather than through physical delivery of goods or assets.

Agricultural Contract

A contract for the future sale or purchase of agricultural products, such as crops or livestock.

Financial Future

A contract to buy or sell a specified asset at a predetermined price at a specified time in the future, often used to hedge risk or speculate.

Commodity Future

A commodity future is a legally binding agreement to buy or sell a particular commodity asset, or its monetary equivalent, at a predetermined price at a specified time in the future.