Carl,age 59,and Cindy,age 49,are Married and File a Joint Return

question 147

Short Answer

Carl,age 59,and Cindy,age 49,are married and file a joint return.During the current year,Carl had a salary of $41,000 and Cindy had a salary of $35,000.Both Carl and Cindy are covered by an employer-sponsored pension plan.Their adjusted gross income for the year is $88,000.Determine the maximum IRA contribution and deduction amounts.
$\begin{array}{cl}\begin{array}{c}\text { Maximum } \\\underline {\text { Contribution }}\end{array} & \begin{array}{c}\text { Maximum } \\\underline {\text { Deduction }}\end{array} \\\text { a. } \$ 12,000 & \$ 12,000 \\\text { b. } \$ 11,000 & \$ 11,000 \\\text { c. } \$ 12,000 & \$ 11,000 \\\text { d. } \$ 11,000 & \$ 9,000 \\\text { e. } \$ 13,000 & \$ 13,000\end{array}$

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Definitions:

Sampling Distribution

The distribution of a statistic over many repeated samples drawn from the same population.

Standard Deviation

A tool for measuring the degree to which data points are scattered or spread apart.

Population Mean

The sum of all values in a population divided by the total number of values.

Judgment Sample

A sampling technique where the samples are chosen based on the judgment of the researcher, rather than random selection.