Jorge purchased a life annuity for $3,200 that will provide him $80 monthly payments for as long as he lives. Based on IRS tables, Jorge's life expectancy is 100 months. How much of the first $80 payment will Jorge include in his gross income? Multiple Choice $80 $72 $48 $32 None of the choices are correct
Jorge purchased a life annuity for $3,200 that will provide him $80 monthly payments for as long as he lives. Based on IRS tables, Jorge's life expectancy is 100 months. How much of the first $80 payment will Jorge include in his gross income? Multiple Choice $80 $72 $48 $32 None of the choices are correct
Chapter3: Income Sources
Section: Chapter Questions
Problem 39P
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Transcribed Image Text:Jorge purchased a life annuity for $3,200 that will provide him $80 monthly payments for as long as he lives. Based on IRS
tables, Jorge's life expectancy is 100 months. How much of the first $80 payment will Jorge include in his gross income?
Multiple Choice
$80
$72
$48
$32
None of the choices are correct.
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