Louise, age 51, terminated employment with Frog Corp. and received a $70,000 distribution from an employer-sponsored qualified retirement plan. Louise immediately contributed $50,000 to a rollover IRA and used the remaining $20,000 to purchase a car. Compute the tax cost (and premature withdrawal penalty, if applicable) of the distribution if Louise has a 32% marginal tax rate on ordinary income.

options:

	$21,000
	$8,400
	$0
	$6,400