Please explain every step. Thank you Larry purchased an annuity from an insurance company that promises to pay him $1,000 per month for the rest of his life.Larry paid $105,120 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of$1,000 this month. Use the expected number of payments in Exhibit 5-1 for this problem.b. If Larry lives more than 15 years after purchasing the annuity, how much of each additional payment should he include in grossincome?Amount to be included in gross income EXHIBIT 5-1 Table for Expected Return Multiple for Ordinary Single-Life AnnuityAge at Annuity Starting DateExpected Return Multiple6817.66916.87016.07115.37214.6

If a purchaser of annuity from insurance company has received all of his original investment as the…

Answered: Larry purchased an annuity from 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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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?
Larry purchased an annuity from N insurance company that promises to pay him $2,000 per month for the rest of his life. Larry paid $210,240 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of $2,000 this month. If Larry lives more than 15 years after starting the annuity, how much of each additional payment should be included in gross income?
Larry purchased an annuity from an insurance company that promises to pay him $1,000 per month for the rest of his life. Larry paid $105,120 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of $1,000 this month. Use the expected number of payments in Exhibit 5-1 for this problem. a. How much of the first payment should Larry include in gross income? Amount to be included in gross income
Abdulrahman is 60 years of age and has a life expectancy of 15 more years. He wishes to invest $25,000 in an annuity that will make a level payment at the end of each year until his death. If the interest rate is 10%, what income can Mr. Abdurrahman expect to receive each year? Select one: a. 190152 b. 90152 c. 550320 d. 25025
Una Day is planning to retire in 14 years, at which time she hopes to have accumulated enough money to receive an annuity of $17,000 a year for 19 years of retirement. During her pre-retirement period she expects to earn 8 percent annually, while during retirement she expects to earn 10 percent annually on her money. What annual contributions to this retirement fund are required for Una to achieve her objective and sleep well at night? (Use a Financial calculator to arrive at the answer. Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Annual contribution $ 7,422 x
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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?
Six years ago, Gladys opened a retirement account with an initial deposit of $14,000. Each year since then, she has added $2,000 to the account at the end of each year. She plans on contributing for the next 25 years. How would you determine the future value of her account at retirement? O Future value of a lump sum and future value of an annuity. O Future value of an annuity and the present value of a lump sum. O Future value of a lump sum and present value of an annuity. O Future value of an annuity.
James deposits $266.40 each month into an annuity account for his child's college fund in order to accumulate a future value of $80,000 in 18 years. How much of the $80,000 will James ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.
Jerry wishes to retire at age 65. He wishes to receive an annuity that pays $50,000 per year continuously for 40 years. He can deposit $250,000 into an account at any age between 35 and 65. If 8-15%, at what exact age should he deposit the money so that it will completely fund the annuity with nothing left over?
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Andrew deposits $306.06 each month into an annuity account for his child's college fund in order to accumulate a future value of $80,000 in 16 years. How much of the $80,000 will Andrew ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.

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