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MAVERICK [17]
2 years ago
6

Assume that Tommy and Michelle have an AGI of $107,000 before IRA deductions by either spouse. The AGI includes $10,000 that Mic

helle earned working part time (but she does not participate in an employer-sponsored retirement plan). Tommy and Michelle file a joint return. What is the maximum deductible contribution Tommy and Michelle may make to a traditional IRA?
Business
1 answer:
SIZIF [17.4K]2 years ago
8 0

Based on the AGI that Tommy and Michelle have, and the fact that they make a joint return, the maximum deductible contribution to a traditional IRA is $11,100.

<h3>How much is their joint maximum deductible contribution?</h3>

Michelle does not participate in an employer-sponsored retirement plan because she is working part-time.

This means that she is entitled to the full $6,000 maximum deductible contribution to a traditional IRA.

Tommy on the other hand, participates in an employer-sponsored retirement plan which means he will have to remove a certain percentage from the deductible based on his range of $104,000 - $124,000.

That rate will be 15% so he will pay:
= 6,000 x ( 1 - 15%)

= $5,100

The total contribution is:

= 6,000 + 5,100

= $11,100

Find out more on contributions to traditional IRAs at brainly.com/question/3629169

#SPJ1

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When can interest be included in the acquisition cost of a plant asset?
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Answer:

a. during the the construction period of a self-constructed asset

Explanation:

"Determining the cost of constructing a new building is often more difficult. Usually this cost includes architect’s fees; building permits; payments to contractors; and the cost of digging the foundation. Also included are labor and materials to build the building; salaries of officers supervising the construction; and insurance, taxes, and interest during the construction period."

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4 years ago
Shawn will pay Craig with a negotiable instrument, and Shawn plans to involve a third party in that process. What instrument sho
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The instrument that Shawn must use is “payable to the order of” before the name of the payee.

<h3>Requirements of Negotiability </h3>
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  • Auditors, retailers, and financial institutions frequently handle notes and checks and must make quick decisions about negotiability.
  • In a negotiable instrument, the only permissible promise or direction is to pay a particular sum of money. Any other promise or command renders negotiability null and void
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  • If the bearer of a negotiable instrument had to examine whether a provision or condition had been met before the thing had any value, the utility of the object as a substitute for money would be severely diminished.

Hence, the instrument that Shawn must use is “payable to the order of” before the name of the payee.

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5 0
2 years ago
Sleeping on job case study<br>​
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7 0
3 years ago
Mike and Mary Jane Lee have a yearly income of $79,352 and own a house worth $102,100, two cars worth a total of $ 19,907 and fu
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Answer:

Total assets            $

Building                102,100

Motor vehicle       19,907

Furniture               <u>10.442</u>

Total assets          <u>132,449</u>

<u></u>

Total liabilities        $

Mortgage loan      58,347

Outstanding loan  2,567

Utility bills unpaid <u>242</u>

Total liabilities       <u> 61,156</u>

Debt ratio = Total liabilities   x 100

                     Total assets

Debt ratio = $61,156   x   100

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Debt ratio = 46.17%

Explanation:

In this case, there is need to calculate the total assets, which is the aggregate of building, motor vehicle and furniture.

We also need to calculate the total liabilities, which is the aggregate of mortgage loan, car loan outstanding and utility bills unpaid.

Debt ratio is obtained by dividing total liabilities by total assets multiplied by 100.

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