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Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $14,400 to the Roth IRA ($4,800 a year). The current value of the Roth IRA is $20,900. In the current year, Sherry withdraws $18,600 of the account balance to purchase a car. Assuming Sherry's marginal tax rate is 24 percent, how much of the $18,600 withdrawal will she retain after taxes to fund t purchase? her car Amount of withdrawal Non-taxable amount Amount subject to tax Tax rate Penalty rate Тах Penalty After tax withdrawal retained

Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $14,400 to the Roth IRA ($4,800 a year). The current value of the Roth IRA is $20,900. In the current year, Sherry withdraws $18,600 of the account balance to purchase a car. Assuming Sherry's marginal tax rate is 24 percent, how much of the $18,600 withdrawal will she retain after taxes to fund t purchase? her car Amount of withdrawal Non-taxable amount Amount subject to tax Tax rate Penalty rate Тах Penalty After tax withdrawal retained

FINANCIAL ACCOUNTING
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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Problem 13-74 (LO 13-4) (Algo) Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $14,400 to the Roth IRA ($4,800 a year). The current value of the Roth IRA is $20,900. In the current year, Sherry withdraws $18,600 of the account balance to purchase a car. Assuming Sherry's marginal tax rate is 24 percent, how much of the $18,600 withdrawal will she retain after taxes to fund her car purchase? Amount of withdrawal Non-taxable amount Amount subject to tax Тах гate Penalty rate Tax Penalty After tax withdrawal retained
Transcribed Image Text:Problem 13-74 (LO 13-4) (Algo) Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $14,400 to the Roth IRA ($4,800 a year). The current value of the Roth IRA is $20,900. In the current year, Sherry withdraws $18,600 of the account balance to purchase a car. Assuming Sherry's marginal tax rate is 24 percent, how much of the $18,600 withdrawal will she retain after taxes to fund her car purchase? Amount of withdrawal Non-taxable amount Amount subject to tax Тах гate Penalty rate Tax Penalty After tax withdrawal retained
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