A 42-year-old single taxpayer earning a salary of $138,000 a year can make which of the following IRA contributions if he is not covered by a plan at work?

a.$7,000 to either a traditional IRA, a Roth IRA, or a nondeductible IRA

b.$6,000 to either a traditional IRA or a nondeductible IRA, but no contribution is allowed to a Roth IRA

c.$6,000 to a Roth IRA only

d.$6,000 to either a traditional IRA, a Roth IRA, or a nondeductible IRA

Tim, a single taxpayer, receives $500 of qualified dividends from Exxon in the current year. His taxable income before the dividends is $26,000. Tim's tax on the dividends will be:

a.$50

b.$100

c.$25

d.$0

e.$75