42.) Anthony has a salary of $150,000 and he contributes the maximum to his 401K. Anthony wishes to make the highest possible level of additional tax-deferred savings for retirement. Which of the following are feasible options for Anthony?

1. Invest in a flexible premium, deferred annuity.

2. Make annual contributions to an IRA on a pre-tax basis.

3. Make annual contributions to an IRA on an after-tax basis.

A.) 1 only

B.) 3 only

C.) 1 and 2 only

D.) 1 and 3 only

44. Evelyn found an additional tax deduction of $3,000. She was in the 20 percent average tax bracket and in the 30 percent marginal rate. If she stays in the same tax brackets, how much will her tax bill lowered?

A.) $900

B.) $600

C.) $700

D.) $500

45.) Papa George wants to pay one-half of the college costs for his daughter, Rihanna. She will be attending a private college with annual costs of $20,000 today. Rhianna is 10 years old and will be starting college in eight years. If these costs are expected to increase by 8 percent annually, how much will Papa George need to provide for her in the first year of college?

A.) $37,019

B,) $27,371

C.) $18,509

D.) $23,409

E.) $74,037

47.) Susan bought a mutual fund with a 10,000 lump-sum amount 10 years ago. During the four years, $4,000 in dividends were reinvested. Today the shares are valued at $20,000 including any shares purchased with dividends. If Susan sells shares equal to 13,000, which statement is correct?

1. The taxable gain can be based on an average cost per share.

2. Susan can choose which shares to sell thereby controlling taxable gain.

3. To minimize the taxable gain today, Susan would sell shares with the higher cost basis.

4. Susan will not have a gain as long as she sells less than what she invested.

A.) 1 only

B.) 1, 2,3 only

C.) 3 only

D.) 2 and 3 only

E.) 1 and 3 only

48.) Maria is a 75- yer old widow with a son and daughter ages 43 and 45, respectively, and six grandchildren. Maria has an estate currently worth 572,000, which includes her home valued at $250,000 and a life insurance policy with a face value of $160,000. Her children are named as primary beneficiariews. Maria reccently suffered a stroke that left her paralyzed on her left side. She is home from the hospital but her health will continue to decline and she will need to go into a nursing home home within one year. She has a will written in 1989 that leaves her assets to her children equally. Of the folllowing estate planning consideratons, which is/are appropriate for Maria?

1. Transfer ownership of her home to her children so it will not be counted a resource should she have to go into nursing home and apply for medicaid.

2. Execute a durable power of attorney for health care and durable general power of attorney.

3. Place all assets in an irrevocable trust with her children as beneficiaries.

4. Start a gifting program transferrign assets to the annual exclusion to each of her children and grandchildren.

A.) 2 only

B.) 4 only

C.) 3 only

D.) 1 only