Hw.34. In May of Year 1, Leo purchased an annuity contract for $108,000. The annuity was to pay Leo $9,000 on June 30th each year for the remainder of his life, beginningJune 30th of Year 1. Leo was 65 years old on June 30th of Year 1. Leo died on August 1" of Year 13.What are the tax consequences of the annuity payment received by Leo on June 30 of Year 17Ed4 Vier Insert Format Tonk Table

Annuity An annuity is a long-term investment provided by an insurance provider that is intended to…

Answered: In May of Year 1, Leo purchased an…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 40P: Minnie owns a qualified annuity that cost 78,000. The annuity is to pay Minnie 650 per month for...

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Marlene, a cash basis taxpayer, invests in Series EE U.S. government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the following on her 2019 gross income: a. On September 30, 2019, she cashed in Series EE bonds for 10,000. She purchased the bonds in 2009 for 7,090. The yield to maturity on the bonds was 3.5%. b. On July 1, 2018, she purchased a CD for 10,000. The CD matures on June 30, 2020, and will pay 10,816, thus yielding a 4% annual return. c. On July 1, 2019, she purchased a CD for 10,000. The maturity date on the CD was June 30, 2020, when Marlene would receive 10,300.
On January 1, 2019, Kunto, a cash basis taxpayer, pays 46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives 50,000. In your computations: a. Compute Kuntos gross income from the certificate for 2019. b. Compute Kuntos gross income from the certificate for 2020. Round any amounts to the nearest dollar.
Hw.37.
After one year from the death of her husband, Nancy Matyas received the proceeds of life insurance of her husband amounting to P1,254,400 including 12% interest per year. How much is the taxable amount? a. P1,254,400 b. P0 c. P134,400 d. P150,528 e. Answer not given
Mani
Shoshan, age 63, retired and began receiving retirement benefits on January 1, 2021. The benefits will be paid for the joint lives of Shoshan and his wife, Aviva, age 67. Shoshan had $36,000 in after-tax contributions to his qualified plan and had received no distributions prior to retirement. How much will Shoshan and Aviva be able to exclude from each of the annuity payments? a. $100 b. $116 c. $138 d. $171 which is correct a, b, c. or d?
Pedro, single received the following during the taxable year: Proceeds of his life insurance paid at an annual premium of P15,000 within 25 years P2,000,000 Proceeds of his mother's life insurance paid at an annual premium of P10,000 within 20 years 1,000,0000 House and lot inherited from his mother 4,000,000 Rent income from inherited properties 200,000 For income tax purposes, how much of the above items must be included in his gross income? a. P7,200,000 c. P200,000 b. P1,200,000 d. P1,825,000
Accounting please provide explanation Alice, a widow, elected to receive the proceeds of a $70,000 face value life insurance policy on the life of her deceased husband in 10 annual installments of $8,000 each beginning in 20X4. Of the $8,000 received in 20X4, the amount not subject to income tax is: a. $1.000 B.$7,000 C.$8,000 d. $0 e. None of the answers provided is correct.
Vanessa Brown has a RRIF account and turned 70 years old in the current taxation year. Vanessa informs you that the fair market value of her RRIF assets at the beginning of the current taxation year is $475,000. Vanessa is a widow and does not have a common-law partner. What is Vanessa's minimum RRIF withdrawal for the current taxation year? OA. $95,000 OB. $25,000 OC. $25,080 O D. $23,750 ....
3
Denger
Q-16

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