25. Ms. Bates purchased an annuity contract that pays her $120 per month beginning March 1, 2020. The annuity cost her $16,900 and has an expected return of $26,000. How much of this annuity is included in her gross income for 2020?
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- Minnie owns a qualified annuity that cost 78,000. The annuity is to pay Minnie 650 per month for life after she reaches age 65. Minnie turns 65 on September 28, 2019, and receives her first payment on November 1, 2019. a. How much gross income does Minnie have from the annuity payments she receives in 2019? b. Shortly after receiving her payment on October 1, 2034, Minnie is killed in an automobile accident. How does the executor of Minnies estate account for the annuity on her return for the year 2034? c. Assume that the accident does not occur until November 1, 2043. How does the executor of Minnies estate account for the annuity on her 2043 return?Virginia and Richard are married taxpayers with adjusted gross income of $28,000 in 2019 If Virginia is able to make a $1,500 contribution to her IRA and Richard makes a $1,500 contribution to his IRA, what is the Saver's Credit Virginia and Richard will be eligible for? $0 $1,500 $2,000 $3,000 $4,000In December 2020 Sally purchased an annuity that pays her $1,000 per month for 16 years. She paid $150,000 for the annuity. Of the $12,000 Sally received in 2021, how much will she include in her gross income? $9,375 $2,625 $12,000 $3,600 $0
- 5. Jeri purchased an annuity contract for $18,600 ($50/month for 15.5 years). The contract began paying Jeri and Christina monthly payments of $200 in June 2022, when Jeri turned 65 and Christina was 59. The contract will continue to pay monthly payments while Jeri and Christina are living. How much income should they report on their 2022 tax return related to the annuity payments? $980 $1,400 $1,050 $0Mr. Dayani purchases an annuity with funds from his savings account on January 1, 2018. The annuity has a 5 year term, and cost him $25,000. Payments are made annually on December 31 in the amount of $5,772. The annuity provides an effective yield of 5%. How much of the annuity payment is taxable in 2018? a. $772. b. $1,250. c. $5,000. d. Nil1. Louisa is 72 years old. She purchased an annuity in January of 2021 that will pay her $1,500 per month for the rest of her life. Louisa paid $200,000 for the annuity. What is the expected value of Louisa’s annuity? a. $18,000 b. $21,900 c. $200,000 d. $262,800 e. Not able to be determined from this information
- 11. Sandra Bellows 65 years old purchased an annuity for $25,000. Starting at the beginning of the year, Sandra will receive $200 per month. What is the total amount that Sandra can include in her gross income from her annuity this year, if multiplier is 15.0?Anne purchased an annuity from an insurance company that promised to pay her $17,000 per year for the next 10 years. Anne paid $130,050 for the annuity, and in exchange she will receive $170,000 over the term of the annuity. Required: a. How much of the first $17,000 payment should Anne include in gross income? Note: Do not round intermediate calculations. b. How much income will Anne recognize over the term of the annuity?Delia purchases an annuity that will pay her $10,000 per year for the next 10 years starting next year. Assuming a rate of 6%, what is the value of the annuity. Choose the closest. a) $106,000 b) $131,808 c) $159,374 d) $171,569
- Anne purchased an annuity from an insurance company that promised to pay her $11,000 per year for the next 10 years. Anne paid $87,450 for the annuity, and in exchange she will receive $110,000 over the term of the annuity. a. How much of the first $11,000 payment should Anne include in gross income? (Do not round intermediate calculations.) b. How much income will Anne recognize over the term of the annuity?Alejandra has an payout annuity that pays 66% annual interest compounded monthly. This is a 2020 year annuity and the beginning amount of the annuity is $10,000.00.What is the monthly amount the annuity pays?$ What is the total amount paid out by the payout annuity over the 2020 year period? $ What is the total amount of interes earned by the annuity ove the 2020 year period? $ Round all answers to the nearest cent. Do not enter dollar signs.Janet receives a $ 10,000 life insurance benefit. If she uses the proceeds to buy an n-year annuity immediate, the annual payout will be 1534.86. If a 2n-year annuity due is purchased, the annual payout will be 994.13. Both calculations are based on an effective annual interest rate of i. Calculate i.