Question 28 of 30 Cara (55) brings a Form 1099-R to her tax appointment. The form shows a code 1 in box 7 and the IRA box is checked. The form shows $20,000 in Box 1 and 2a She made no nondeductible contributions. During the tax interview you discover that Cara paid her ex-husband $5,000 under an alimony agreement, used $9,500 to purchase a house, and used the rest to furnish her new house. She has not owned a house for over two years. How much of Cara's distribution will be subject to the early distribution penalty? $0 O $5,500 O $10,500 O $20,000 Mark for follow up Back Save / Return Later Summary Next