Answered: David, age 62, retires and receives a… | bartleby

PAYROLL ACCT.,2019 ED.(LL)-TEXT

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter4: Income Tax Withholding

Section: Chapter Questions

Problem 7QR

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Please given correct answer general Accounting

David, age 62, retires and receives a $1,000 per month annuity from his
employer's qualified pension plan. David made $65,000 of after-tax
contributions to the plan prior to his retirement. Under the simplified method,
David's number of anticipated payments is 260.
What is the amount includible in income in the first year of withdrawals assuming
12 monthly payments?
A. $2,600
B. $12,000
C. $9,000
D. $3,000

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