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pectancy is 20.8 years from the annuity starting date. Assuming that she receives $7,000 this year, how much is included in her gross ome?

pectancy is 20.8 years from the annuity starting date. Assuming that she receives $7,000 this year, how much is included in her gross ome?

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 $70,000. She is to receive $583 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $7,000 this year, how much is included in her gross income? Round any percentages to two decimal places. Round the final answer for the income to the nearest dollar. Exclusion percentage: Included in income: 48 X %
Transcribed Image Text:A taxpayer, age 64, purchases an annuity from an insurance company for $70,000. She is to receive $583 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $7,000 this year, how much is included in her gross income? Round any percentages to two decimal places. Round the final answer for the income to the nearest dollar. Exclusion percentage: Included in income: 48 X %
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