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8. an annuity ract in 2023 that will pay On March 1, 2023, Don, age 59, paid $75,0 month beginning immediately on March 1, 2023 and continue paying monthly benefits (on the 1" of the month) until his death. Don's life expectancy is 25 years from the annuity start date of March 1, 2023. How much gross income must Don report for 2023 attributable to the annuity payments received by Dom in 2023? a. $2,500 b. $3,000 C. $5,000 d. $6,000 e. None of the above

8. an annuity ract in 2023 that will pay On March 1, 2023, Don, age 59, paid $75,0 month beginning immediately on March 1, 2023 and continue paying monthly benefits (on the 1" of the month) until his death. Don's life expectancy is 25 years from the annuity start date of March 1, 2023. How much gross income must Don report for 2023 attributable to the annuity payments received by Dom in 2023? a. $2,500 b. $3,000 C. $5,000 d. $6,000 e. None of the above

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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8. On March 1, 2023, Don, age 59, paid $75,000 for an annuity contract in 2023 that will pay him $500 per month beginning immediately on March 1, 2023 and continue paying monthly benefits (on the 1st of the month) until his death. Don's life expectancy is 25 years from the annuity start date of March 1, 2023. How much gross income must Don report for 2023 attributable to the annuity payments received by Don in 2023? a. $2,500 b. $3,000 C. $5,000 d. $6,000 e. None of the above
Transcribed Image Text:8. On March 1, 2023, Don, age 59, paid $75,000 for an annuity contract in 2023 that will pay him $500 per month beginning immediately on March 1, 2023 and continue paying monthly benefits (on the 1st of the month) until his death. Don's life expectancy is 25 years from the annuity start date of March 1, 2023. How much gross income must Don report for 2023 attributable to the annuity payments received by Don in 2023? a. $2,500 b. $3,000 C. $5,000 d. $6,000 e. None of the above
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