Hector Is a 54-Year-Old Head of Household and a Self-Employed

question 27

Multiple Choice

Hector is a 54-year-old head of household and a self-employed taxpayer. He contributed the maximum amount to his IRA account during the current year, and his net earnings from his business totaled $36,000. How much can Hector deduct for AGI this year?

• A)$- 0 -
• B)$3,200
• C)$5,500
• D)$6,000
• E)$6,500

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Definitions:

Distressed Firms

Companies experiencing financial difficulties, often facing bankruptcy or restructuring.

Convertible Bonds

Bonds that can be converted into a predetermined number of shares of the issuer's stock, at the option of the bondholder.

Currency Speculation

The act of buying and selling currencies with the aim of profiting from changes in exchange rates.

Market Timing

The strategy of making buy or sell decisions of financial assets by attempting to predict future market price movements, often with the goal of buying low and selling high.