please solve account general questions James, an unmarried student aged 20, had gross income of $22,000this year. His income consisted of $4,000 in wages and $18,000 ininvestment income received from a trust. What is the maximum hecan contribute to an IRA?a. $5,500b. $5,000c. $4,000d. $0

Solution:The maximum contribution to an Individual Retirement Account (IRA) is determined by the…

Answered: James, an unmarried student aged 20,…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxation Of Trusts And Estates

Section: Chapter Questions

Problem 6BCRQ

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Case study for Harry and Belinda Johnson. Given: Harry Johnson - Annual Income $73,000.00 contributed to a traditional IRA $3,000.00 Belinda Johnson - Annual Income $94,000.00 contribued to 401(k) $3,000.00 Earned Interst - checking & savings $400.00 Earned Interst -Trust (taxed same as check & sav) $3,000.00 1. What is the Johnson's reportable gross income on their joint tax return? 2. What is their adjusted gross income?
Frank established a Roth IRA at age 25 and contributed a total of $131,244 to it over 38 years. The account is now worth $376,000. How much of these funds can Frank withdraw tax-free? a. $0. b. $131,244 c. $244,756 d. $376,000
Case Study for Harry and Belinda Johnson. Given: Harry Johnson - Annual Income $73,000.00 contributed to a traditional IRA $3,000.00 Belinda Johnson - Annual Income $94,000.00 contribued to 401(k) $3,000.00 Earned Interst - checking & savings $400.00 Earned Interst -Trust (taxed same as check & sav) $3,000.00 1. What is the total value of their exemptions? 2. How much is the standard deduction for the Johnsons?
General Account - Dorothy Fonda is an unmarried head of household with the following income for the year: Wages, $34,500; Bank interest, $275; Municipal bond interest, $115; Lottery prize, $325; Gift from her father, $5,000. Dorothy contributed $1,250 to her traditional IRA, which she will deduct. Compute her AGI. a. $33,250.00 b. $33,575.00 c. $33,850.00 d. $33,965.00
Yoko invested s4000 in a fund for 2 years and was paid simple interest. The total interest that she received on the investment was $400. As a percentage, 00 what was the annual interest rate of her investment? If necessary, refer to the list of financial formulas.
Ahlam invests a certain fund worth OMR 6,000 in Bank Muscat for 3 years. At the end of this period, she obtains an amount of OMR 7,500. What is the interest amount offered by the bank to Ahlam? a. OMR 1,500 b. OMR 2,000 c. OMR 13,500 d. OMR 500
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1. Louisa is 72 years old. She purchased an annuity in January of 2021 that will pay her $1,500 per month for the rest of her life. Louisa paid $200,000 for the annuity. What is the expected value of Louisa’s annuity? a. $18,000 b. $21,900 c. $200,000 d. $262,800 e. Not able to be determined from this information
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Danny received the following interest and dividend payments this year. What amount should Danny include in his gross income? a. 2,500 b. 1,500 c. 3,700 d. 2,200
A young man is the beneficiary of a trust fund established for him 16 years ago at his birth. If the original amount placed in trust was $50,000, how much will he receive if the money has earned interest at the rate of 9/year compounded annually? Compounded quarterly? Compounded monthly? (Round your answers to the nearest cent.) compounded annually $198.515 29 compounded quarterly $ compounded monthly $
MCQ'S: 21) If a 16-year-old high school student put $2,000 at the end of each year for 4 years into an IRA that earned a rate of 9%, how much would she have accumulated by age 65? Assume funds are left to accumulate for 45 years (age 20-65) at 9%. a.$386,616 b.$9,146 c.$1,767,995 d.$442,014 . 22) Clinch River Power is considering refunding a $150 million 12% coupon bond with a 10% coupon bond, 20-year bond. The current bond also matures in 20 years and is now callable at 110% of par. The unamortized flotation cost on the old issue is $540,000, and the flotation cost of the new issue is 0.925%. Clinch River estimates that there would be a 4-week period where both bonds would be outstanding. The company has a weighted cost of capital of 11% and a 40% marginal tax rate. Clinch River has decided to sell the refunding issue. What is their reasoning? a.NPV is approximately $10.808 million b.NPV is…

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James, an unmarried student aged 20, had gross income of $22,000 this year. His income consisted of $4,000 in wages and $18,000 in investment income received from a trust. What is the maximum he can contribute to an IRA? a. $5,500 b. $5,000 c. $4,000 d. $0