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Ede4ka [16]
3 years ago
9

Addison pays $15,000 for an annuity that will pay $1,000 a year, starting this year. If the annuity is for a term of 20 years, h

ow much taxable income will Addison have from the annuity each year? Question 16 options: Addison will never have taxable income resulting from annuity distributions. Addison will have $250 of taxable income from the annuity each year. Addison will have $750 of taxable income from the annuity each year. Addison will have $1,000 of taxable income from the annuity each year.
Business
1 answer:
kati45 [8]3 years ago
6 0

Answer:

Addison will have $250 of taxable income from the annuity each year

Explanation:

Given:

Addison's total pay = $15,000

Per year amount receive = $1,000

Total amount receive = $1,000 x 20 = $20,000

Computation of Addison's exclusion ratio:

Addison's exclusion ratio = $15,000 / $20,000

Addison's exclusion ratio = 0.75

Computation of Addison's gross income:

Addison's gross income = Per year amount receive x (1 - Addison's exclusion ratio)

Addison's gross income = $1,000 x (1 - 0.75)

Addison's gross income = $250

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Explanation:

<em>Hope this helps :)  </em>

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3 years ago
"publicity": 1. is generally less effective than advertising for promoting a really new product. 2. is mass selling that avoids
Monica [59]
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3 years ago
Target profit a.are when sales and costs are exactly equal. b.can be calculated by modifying the break-even equation. c.equals d
Irina-Kira [14]

Answer:

b. can be calculated by modifying the break-even equation.

Explanation:

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It can be easily seen in a cash flow planning as it is once modified to approximate cash flow, and also used for revealing expected results to investors and lenders. In all that it is been used for, in the scenario above, it also can be calculated by modifying the break-even equation, and deriving more conservative budgeting packages in business development too.

Adjust the contribution margin per unit and units sold based on an expected sales promotion.

Alter the fixed cost total and the contribution margin per unit for the effects of outsourcing production.

Alter the contribution margin for the effects of changing to a just-in-time production system.

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Brilliant_brown [7]
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liubo4ka [24]

Answer:

b.$0

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As we know that

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