A. $463 | |||
Net Earning = | Excess Contribution x (Adjusted closing balance - Adjusted opening balance)/Adjusted opening balance | ||
$500 x ($190,000 - $200,000 + $5,000)/$205,000 | |||
($36.58) i.e. ($37) | |||
Total amount of withdrawal = $500 - $37 = $463 |
On May 2, 2018, Lori makes a $5,000 contribution to her IRA, which had a fair...
Problem 2-45 (LO 2-6) Charles and Joan Thompson file a joint return. In 2018, they had taxable income of $107.440 and paid tax of $15,516. Charles is an advertising executive, and Joan is a college professor. During the fall 2019 semester, Joan is planning to take a leave of absence without pay. The Thompsons expect their taxable income to drop to $88.000 in 2019. They expect their 2019 tax liability will be $11,083, which will be the approximate amount of...