Answer:
Joan will pay income tax on the $10,000 she withdrew in 2018.
Explanation:
When withdrawing from traditional retirement account, the following rules apply:
1. Withdrawals before attaining the age of 59.5 years attract a penalty of 10%, along with income tax on the amount withdrawn.
2. Withdrawals after the age of 59.5 years are treated as income, so income tax is paid on it. In this case tax on the $10,000 withdrawn.
3. At age 70.5 and above you must take the Required Minimum Distribution (RMD) from the pension account.
Note: Roth IRA does not attract tax payments for ages 59.5 years and above, unlike traditional IRA that attracts income tax.
RMD payments does not apply for Roth IRA.
Answer:
$175,100
Explanation:
Job 523 started on June 1 and ended on July 15
The total cost on July 15 was 10,800
The cost added in July was 164,300
Therefore the debit to cost of goods sold can be calculated as follows.
= 10,800 + 164,300
= 175,100
Hence the debit to cost of goods sold is $175,100
