Dean and Sue Are Married Filing Jointly with AGI of $28,000.They

question 127

Multiple Choice

Dean and Sue are married filing jointly with AGI of $28,000.They made a $1,500 contribution to a qualified retirement plan.How much is their retirement savings contributions credit?

• A)$300.
• B)$150.
• C)$750.
• D)$0.

---

Definitions:

Perpetual Inventory System

An inventory system that tracks merchandise in real-time, updating inventory records immediately upon purchase or sale.

Periodic Inventory System

An inventory accounting system where updates to inventory levels and Cost of Goods Sold are made at set intervals.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.

IFRS

International Financial Reporting Standards, a set of accounting standards providing a global framework for how public companies prepare financial statements.