[14] Mr. P was eligible for, and set up as his only retirement plan, an individual retirement account for Year 1 on January 27, Year 2. On February 15, Year 2, P contributed $1,700 to his account. Mr. P's income for Year 1 consisted of the following:

Wages

Interest income Dividend income

What is P's deduction for Year 1?

A. $0

B. $1,700 C. $3,000 D. $6,000

$10,000 3,000 2,100

[15] Harry and Sally are married and both are under age 50. During 2019, Harry earned $3,000 and Sally earned $39,500. Neither is covered by an employer retirement plan. What is the maximum amount they can contribute to their individual retirement accounts for 2019?

A. $5,500 B. $6,000 C. $9,000 D. $12,000

[16] All of the following types of income are considered earned compensation in determining whether an individual retirement account can be set up and contributions made except

A. Self-employment income.

B. Partnership income of an active partner providing services to the partnership. C. Alimony.

D. Rental income from a property in which the taxpayer has active participation.