Indicate the Proper Treatment in the Current Year for the Underlined

question 155

Multiple Choice

Indicate the proper treatment in the current year for the underlined amounts. Treat each item as an independent event. Indicate whether the amount is deductible or not; if deductible whether it is deductible FOR or FROM AGI; and indicate the amount of the deduction for the current year considering any relevant limitations. Assume the taxpayer has deductions greater than the standard deduction, has AGI of $69,000 without regard to the following transactions and has no "total" income limitations related to itemized deductions.
-Qualified contribution of $6,500 to an IRA by a 52 year old married taxpayer who is covered by his employer's pension plan. Amount: $6,500

• A)Not Deductible
• B)Deductible - For AGI
• C)Deductible - From AGI

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Definitions:

Organelle

One of the specialized structures within the cell, such as the mitochondria, Golgi complex, ribosomes, or contractile vacuole; many organelles are membrane-enclosed.

Geologic Time Scale

A system of chronological dating that relates geological strata to time, used by geologists and other Earth scientists to describe the timing and relationships of events in Earth's history.

Eon

The largest division of the geologic time scale; eons are divided into eras.

Mass Extinction

An event in which a significant, global decrease in the diversity and abundance of life occurs in a relatively short period of geological time.