Cisco and Carmen Are Both in Their 30's and Are

question 88

Multiple Choice

Cisco and Carmen are both in their 30's and are married. Carmen earns $72,000 and Cisco earns $28,000. Their adjusted gross income is $107,000. Carmen is an active participant in her company's pension plan. Cisco's employer does not have a pension plan. What are Carmen and Cisco's maximum combined IRA contribution and deduction amounts?
Contribution Deduction

• A)$-0- $-0-
• B)$11,000 $5,500
• C)$11,000 $9,350
• D)$11,000 $11,000

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Definitions:

Encoding

The process of converting information into a form that allows it to be stored in our memory.

Cognitive Processes

Mental activities such as thinking, understanding, learning, and remembering.

Unattended Information

Information that is present in the environment but is not the focus of one's attention and hence is processed minimally or not at all.

Sensory Memory

The shortest-term element of memory, which allows retention of impressions of sensory information after the original stimuli have ended.