Mrs. Lee, age 70, withdrew $40,000 from her traditional IRA this year. The balance in the account at year-end was $96, 600, which included $28,000 of nondeductible contributions. Compute the taxable portion of the $40,000 withdrawal. A) SO B) $8, 19⁹9 C) $31, 801 D) $40,000
Mrs. Lee, age 70, withdrew $40,000 from her traditional IRA this year. The balance in the account at year-end was $96, 600, which included $28,000 of nondeductible contributions. Compute the taxable portion of the $40,000 withdrawal. A) SO B) $8, 19⁹9 C) $31, 801 D) $40,000
Chapter28: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 6BCRQ
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Transcribed Image Text:Mrs. Lee, age 70, withdrew $40,000 from her traditional IRA this year. The balance in the account
at year - end was $96, 600, which included $28,000 of nondeductible contributions. Compute the
taxable portion of the $40,000 withdrawal. A) S0 B) $8, 199 C) $31,801 D) $40,000
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