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A taxpayer, age 64, purchases an annuity from an insurance company for $62,000. She is to receive $517 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $6,200 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.. Exclusion percentage: Included in income: es $ %

A taxpayer, age 64, purchases an annuity from an insurance company for $62,000. She is to receive $517 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $6,200 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.. Exclusion percentage: Included in income: es $ %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A taxpayer, age 64, purchases an annuity from an insurance company for $62,000. She is to receive $517 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $6,200 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.. Exclusion percentage: Included in income: $ %
Transcribed Image Text:A taxpayer, age 64, purchases an annuity from an insurance company for $62,000. She is to receive $517 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $6,200 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.. Exclusion percentage: Included in income: $ %
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