Question

A taxpayer, age 64, purchases an annuity from an insurance company for $50,000. She is to receive $300 per month for life. Her life expectancy 20.8 years from the annuity starting date. Assuming that she receives $3,600 this year, what is the exclusion percentage and how much is included in her gross income?

Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar.

Step 1

**Calculation of Exclusion Percentage and Amount Included in Gross Income:**

The exclusion percentage is **66.77% **and amount included in gross income is **$2,403.85**.

**Excel Sprea...**

Tagged in

Q: You are negotiating to make a 6-year loan of $40,000 to Breck Inc. To repay you, Breck will pay $5,0...

A: In order to profit from lending, one has to ensure that the PV of loan payments must be greater than...

Q: Ruth Company currently has $1,000,000 in accounts receivable. Its days sales outstanding (DSO) is 5...

A: Calculation of annual sales using days sale outstanding (DSO):

Q: Consider a firm with an EBITDA of $14,400,000 and an EBIT of $11,200,000. The firm finances its asse...

A: Approach:As a first step let's calculate the debt before and after the share repurchase.As a second ...

Q: What are investment assets ?

A: Investment Assets: Investment assets are termed as tangible or intangible things that are acquired f...

Q: Consider the following two mutually exclusive projects: year cash flow A cash flow B...

A: Let me state upfront that none of the alternatives listed in the question states the correct answer....

Q: Hankins Corporation has 8.9 million shares of common stock outstanding, 640,000 shares of 7.4 percen...

A: Calculating the value of after-tax cost of capital. We have,Cost of debt is calculating by the calcu...

Q: The Analysis and Valuation of Bonds, Investment Analysis and Portfolio Management1. The following ta...

A: a.Calculate the one-year implied forward rate as follows:

Q: Your company has been approached to bid on a contract to sell 21,000 voice recognition (VR) computer...

A: As per the details provided in the question, following are the required calculation where selling pr...

Q: When the company ships a product to a customer on credit, it risks loosing the Cost of Goods Sold if...

A: Companies who sell the products, they may not get the payments back on time. If the credit term is n...

Sorry about that. What wasn’t helpful?