Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $13,800 to the Roth IRA ($4,600 ayear). The current value of the Roth IRA is $21,700. In the current year, Sherry withdraws $19,400 of the account balance to purchase acar. Assuming Sherry's marginal tax rate is 24 percent, how much of the $19,400 withdrawal will she retain after taxes to fund her carpurchase?Amount of withdrawalNon-taxable amountAmount subject to taxTax ratePenalty rateTaxPenaltyAfter tax withdrawal retained$0%%

The after-tax amount refers to the value or amount of income, financial result, or financial figure…

Answered: Sherry, who is 52 years of age, opened…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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