« previous next »

Author Question: Juanita paid a life insurer 45,000 in exchange for an immediate life annuity. Juanita will receive ... (Read 180 times)

Metfan725

  • Hero Member
  • *****
  • Posts: 552
on: Jul 11, 2018
Juanita paid a life insurer 45,000 in exchange for an immediate life annuity. Juanita will receive 500 per month from the insurer, and her life expectancy is 15 years (180 months).
 
  Assume that Juanita receives 12 monthly payments of 500 the first year. How much taxable income must she report?
  A) 3,000
  B) 4,000
  C) 4,500
  D) 6,000

Question 2

Which of the following statements is (are) true regarding the taxation of distributions from individual annuities?
 
  I. Individual annuity distributions are never taxable.
  II. Once the annuitant has recovered the premiums he or she paid for the annuity, the entire annuity distribution is taxable.
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II


olderstudent

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: A

Answer to Question 2

Answer: B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

A web of life A web of life
Fossils Give Us a View of Past Life Fossils Give Us a View of Past Life
How to solve all of life's problems How to solve all of life's problems
The lower respiratory tract and the process of gas exchange. The lower respiratory tract and the process of gas exchange.
Urban Life Urban Life
The impact of industry and manufacturing on our life The impact of industry and manufacturing on our life
Video: Kinetic parameters & Kinetic experiment

For a complete list of videos, visit our video library