Lyndon, age 24, has a nonworking spouse and earns wages of $36,000 for 2018. He also received

Question:

Lyndon, age 24, has a nonworking spouse and earns wages of $36,000 for 2018. He also received rental income of $5,000 and dividend income of $900 for the year. What is the maximum amount Lyndon can deduct for contributions to his and his wife’s individual retirement accounts for the 2018 tax year?

a. $11,000

b. $3,600

c. $4,500

d. $5,500

e. None of the above

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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