For each of the following questions, assume you are in the 10% tax bracket. In other words, your marginal tax rate is 10% so an additional dollar of taxable income will result in an increase of tax liability by $0.10 or 10 cents. What is the correct classification of a $5,000 annual contribution to a 401(k) account and what is its impact on your tax liability? a. Exclusion and $5,000 b. Adjustment and $500 c. Tax credit and $500 d. Allowable itemized deduction and $500 For each of the following questions, assume you are in the 10% tax bracket. In other words, your marginal tax rate is 10% so an additional dollar of taxable income will result in an increase of tax liability by $0.10 or 10 cents. What is the correct classification of a $5,000 annual contribution to a 401(k) account and what is its impact on your tax liability? a. Exclusion and $5,000 b. Adjustment and $500 c. Tax credit and $500 d. Allowable itemized deduction and $500