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Using the simplified method, determine the tax-free amount of the following distributions from a qualified pension plan. Contributions, if any, are made with previously taxed dollars. Use monthly payments table. Required: Person A, age 63, made no contributions to the pension plan and will receive a $1,300 monthly check for life. Person B, age 68, made contributions of $29,500 to the pension plan and will receive a monthly check of $2,600 for life. (Round your answers to 2 decimal places.) Person C, age 72, made contributions of $ 27,000 to the pension plan and will receive monthly payments of $2,200 over her life and the life of her 75-year-old husband. (Round your answers to 2 decimal places.) Person D, age 71, made contributions of $40,000 to the pension plan. He will receive quarterly payments of $5,200 over his life and the life of his 74-year-old wife. (Round your answers to 2 decimal places.) A Tax - free portion B Tax free portion C Tax free portion D Tax free portion

Using the simplified method, determine the tax-free amount of the following distributions from a qualified pension plan. Contributions, if any, are made with previously taxed dollars. Use monthly payments table. Required: Person A, age 63, made no contributions to the pension plan and will receive a $1,300 monthly check for life. Person B, age 68, made contributions of $29,500 to the pension plan and will receive a monthly check of $2,600 for life. (Round your answers to 2 decimal places.) Person C, age 72, made contributions of $ 27,000 to the pension plan and will receive monthly payments of $2,200 over her life and the life of her 75-year-old husband. (Round your answers to 2 decimal places.) Person D, age 71, made contributions of $40,000 to the pension plan. He will receive quarterly payments of $5,200 over his life and the life of his 74-year-old wife. (Round your answers to 2 decimal places.) A Tax - free portion B Tax free portion C Tax free portion D Tax free portion

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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Using the simplified method, determine the tax - free amount of the following distributions from a qualified pension plan. Contributions, if any, are made with previously taxed dollars. Use monthly payments table. Required: Person A, age 63, made no contributions to the pension plan and will receive a $1,300 monthly check for life. Person B, age 68, made contributions of $29,500 to the pension plan and will receive a monthly check of $2,600 for life. (Round your answers to 2 decimal places.) Person C, age 72, made contributions of $ 27,000 to the pension plan and will receive monthly payments of $2,200 over her life and the life of her75-year-old husband. (Round your answers to 2 decimal places.) Person D, age 71, made contributions of $40,000 to the pension plan. He will receive quarterly payments of $5,200 over his life and the life of his 74-year-old wife. (Round your answers to 2 decimal places.) A Tax - free portion B Tax free portion C Tax free portion D Tax free portion
Transcribed Image Text:Using the simplified method, determine the tax - free amount of the following distributions from a qualified pension plan. Contributions, if any, are made with previously taxed dollars. Use monthly payments table. Required: Person A, age 63, made no contributions to the pension plan and will receive a $1,300 monthly check for life. Person B, age 68, made contributions of $29,500 to the pension plan and will receive a monthly check of $2,600 for life. (Round your answers to 2 decimal places.) Person C, age 72, made contributions of $ 27,000 to the pension plan and will receive monthly payments of $2,200 over her life and the life of her75-year-old husband. (Round your answers to 2 decimal places.) Person D, age 71, made contributions of $40,000 to the pension plan. He will receive quarterly payments of $5,200 over his life and the life of his 74-year-old wife. (Round your answers to 2 decimal places.) A Tax - free portion B Tax free portion C Tax free portion D Tax free portion
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