Lola, age 64 began receiving $1,200 as a monthly annuity in 2019 when her husband died. She received nine payments in 2019. Her husband contributed $54,800 to a qualified employee plan. Use the Simplified Method Worksheet (See image) to calculate Lola’s taxable amount from the annuity. (Show all computations) SIMPLIFIED METHOD WORKSHEET1. Enter total amount received this year.2. Enter cost in the plan at the annuity starting date.3. Age at annuity starting date1.2.Enter55 and under56-6061-653603102602101603.66-7071 and older4. Divide line 2 by line 3.5. Multiply line 4 by the number of monthly paymentsthis year. If the annuity starting date was before1987, also enter this amount on line 8, and skiplines 6 and 7. Otherwise, go to line 6.6. Enter the amount, if any, recovered tax free in prior5.6.years.7. Subtract line 6 from line 2.8. Enter the smaller of line 5 or 7.9. Taxable amount this year: Subtract line 8 from7.8.9.line 1. Do not enter less than zero.

The question is based on the concept of financial accounting.

ola, age 64 began receiving $1,200 as a monthly annuity in 2019 when her husband died. She received nine payments in 2019. Her husband contributed $54,800 to a qualified employee plan. Use the Simplified Method Worksheet (See image) to calculate Lola’s taxable amount from the annuity. (Show all computations)

ola, age 64 began receiving $1,200 as a monthly annuity in 2019 when her husband died. She received nine payments in 2019. Her husband contributed $54,800 to a qualified employee plan. Use the Simplified Method Worksheet (See image) to calculate Lola’s taxable amount from the annuity. (Show all computations)

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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