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nirvana33 [79]
3 years ago
13

Geoff purchased a life annuity for $4,800 that will provide him $100 monthly payments for as long as he lives. Based on IRS tabl

es, Geoff's life expectancy is 240 months. How much of the first $100 payment will George include in his gross income?
A. $100
B. $80
C. $48
D. $20
E. None of the Above
Business
1 answer:
Brilliant_brown [7]3 years ago
8 0

Answer:

B. $80

Explanation:

The annuity exclusion ratio is ($4,800/($100*240))= 20% return of capital per payment. Hence, $80 of the $100 monthly payment is include in gross income

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it will be a net loss of 560,000

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The sales and variable cost will be zero.

\left[\begin{array}{cccc}&Continued&Discontinued&Differential\\Sales&1,200,000&0&-1,200,000\\Variable&-640,000&0&640,000\\Allocate cost&-620,000&-620,000&0\\Result&-60,000&-620,000&-560,000\\\end{array}\right]

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An individual has $32,000 invested in a stock with a beta of 1.1 and another $48,000 invested in a stock with a beta of 1.3 If t
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