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Sedaia [141]
3 years ago
5

Mark a calendar year taxpayer, purchased an annuity for $50,000 in 2012. The annuity was to pay him $3,000 on the first day of e

ach year, beginning in 2012, for the remainder of his life. Mark's life expectancy at the time he purchased the annuity was 20 years. In 2014 Mark developed a deadly disease, and doctors estimated that he would live for no more than 24 months. a. If Seth dies in 2015, a loss can be claimed on his final return for his unrecovered cost of the annuity. b. If Seth dies in 2015, his returns for the two previous years can be amended to allocate the entire cost of the annuity to the years in which he received payments and reported gross income. c. If Seth is still alive at the end of 2014, he is not required to recognize any gross income because of his terminal illness. d. If Seth is still alive in 2034, his recovery of capital for that year is $500. e. None of these.
Business
1 answer:
Zigmanuir [339]3 years ago
3 0

Answer:

a. If Seth dies in 2015, a loss can be claimed on his final return for his unrecoverable cost of the annuity.

Explanation:

Fixed-Period Annuity

The fixed-period, or period-certain, annuity guarantees payments to the annuitant for a predetermined length of time. Some common options are 10, 15, or 20 years. In a fixed-amount annuity, the annuitant elects an amount to be paid each month until death or benefits are exhausted. If the annuitant dies before the defined benefit is paid, some plans provide for the remaining benefits to be paid to a beneficiary. This feature applies if either the full period has not yet elapsed or a balance remains on the account at the time of death, depending on the plan. However, if the annuitant outlives the fixed period or exhausts the account before death, no further payments are guaranteed. If the plan provides for the continuation of benefits, payments continue to be paid to the beneficiary until the predetermined period elapses or the balance reaches zero.

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Answer: 0

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6 0
2 years ago
In 2010, some bottles of a competitor’s kombucha were bubbling and leaking at a whole foods in texas. Test results revealed that
Nitella [24]

After losing all of this distribution, one option for it might have been a form of nonstore retailing that uses machines to offer goods for sale. This is an example of automatic vending.

Right here are the styles of retailing that exist these days – save retailing: This includes different forms of retail stores like branch shops, specialty shops, supermarkets, comfort shops, catalog showrooms, drug shops, superstores, discount stores, excessive cost stores, and so forth.

The retailing concept is an idea that examines the evolution of and transformation of the retail lifestyles cycle. This concept was first introduced by using Professor McNair from Harvard College. The retailing idea indicates new retailers will generally begin with low-value and occasional-margin operations.

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Learn more about retailing here brainly.com/question/17613245

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7 0
1 year ago
Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, truck
Shalnov [3]

Answer:

a. volatility

Explanation:

From the question, we are informed that "Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, trucks, and SUVs. In case of Doing this it helps Toyota manage the volatility of industrial demand.

volatility of industrial demand do occur where there is uncertainty as far as demand is concerned in the consumer products , as a result of this most firms to catch up with compitition, growing their sales an lot more , so in this case Toyota still continues to manufacture its traditionally fueled cars, trucks, and SUVs even though there is Mirai for the U.S. market.

8 0
2 years ago
The acquisition of land by issuing common stock is
stiv31 [10]
For the answer to the question above, t<span>he acquisition of land by issuing common stock is </span>a noncash transaction that is not reported in the body of a statement of cash flows. So the answer is A. 

I hope my answer helped you.
5 0
3 years ago
The factor-price equalization theory and transportation costs Which of the following statements about the factor-price equalizat
abruzzese [7]

Answer:

B and C

Explanation:

The correct statements about the factor-price equalization and the effects of transportation costs are:

  1. Free trade, in the absence of transportation costs or other barriers to trade, tends to equalize product prices and factor prices.
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6 0
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