Sammy,age 31,is Unmarried and Is Not an Active Participant in a Qualified

question 44

Multiple Choice

Sammy,age 31,is unmarried and is not an active participant in a qualified retirement plan.His modified AGI is $55,000 in 2016.The maximum amount that Sammy can deduct for a contribution to a traditional IRA is:

• A)$2,800.
• B)$3,500.
• C)$5,000.
• D)$5,500.
• E)None of the above.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, representing the short-term liquidity.

Long-Term Debt

Financial obligations of a company that are due more than one year in the future.

Current Assets

Assets owned by a company that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business.