What is the treatment of disability pension income? Choose one answer. a. None of these b. Not taxable c. Taxable as a pension or annuity d. Taxable as wages e. Taxable as wages until the employee reaches minimum retirement age and as a pension or annuity after the employee reaches minimum retirement age.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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21
What is the treatment of disability pension income?
Choose one
answer.
Betty earned interest of $430 on a savings account and $90 on a checking account. The $90 was withdrawn, but the
$430 was left in the savings. How much interest income must Betty report on her return?
Choose one
answer.
a. None of these
b. Not taxable
c. Taxable as a pension or annuity
d. Taxable as wages
e. Taxable as wages until the employee reaches minimum retirement age and as a pension or annuity after
the employee reaches minimum retirement age.
10
a. $430
b. None of these
c. $520
d. $0
e. $90
Transcribed Image Text:21 What is the treatment of disability pension income? Choose one answer. Betty earned interest of $430 on a savings account and $90 on a checking account. The $90 was withdrawn, but the $430 was left in the savings. How much interest income must Betty report on her return? Choose one answer. a. None of these b. Not taxable c. Taxable as a pension or annuity d. Taxable as wages e. Taxable as wages until the employee reaches minimum retirement age and as a pension or annuity after the employee reaches minimum retirement age. 10 a. $430 b. None of these c. $520 d. $0 e. $90
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