Dan and Dawn Are Married and File a Joint Return

question 79

Multiple Choice

Dan and Dawn are married and file a joint return.During the current year,Dan had a salary of $30,000 and Dawn had a salary of $36,000.Both Dan and Dawn are covered by an employer-sponsored pension plan.Their adjusted gross income for the year is $99,000.Determine the maximum IRA contribution and deduction amounts.
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Maximum Maximum
Contribution Deduction

• A)$11,000 $11,000
• B)$11,000 $- 0 -
• C)$11,000 $5,500
• D)$5,500 $-0-
• E)$8,000 $8,000

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Definitions:

Job-Order Costing System

A method of assigning costs to specific production batches or jobs, often used in manufacturing where the products are distinctly different.

Direct Labor Cost

The total cost of wages paid to employees who are directly involved in the production of a product or service.

Job-Order Costing System

A costing method used to collect and assign manufacturing costs to individual units or specific jobs.

Manufacturing Overhead

All indirect costs associated with the production process, excluding direct materials and direct labor expenses.