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VLD [36.1K]
3 years ago
6

A taxpayer, age 64, purchases an annuity from an insurance company for $82,000. She is to receive $683 per month for life. Her l

ife expectancy is 20.8 years from the annuity starting date. Assuming that she receives $8,200 this year, what is the exclusion percentage and how much is included in her gross income
Business
1 answer:
Vinil7 [7]3 years ago
8 0

Answer:

Exclusion Percentage = 48.10%

Included in income = $4256

Explanation:

The exclusion percentage can be calculated using the following formula:

=> Exclusion Percentage = Investment in Total /(Payments made * Life Expectancy *Total months in a year)

=> Exclusion Percentage = $82,000 / ($683* 20.8 *12)

=> Exclusion Percentage = 0.4810 = 48.10%  (Rounded off to two decimal places)

(Included in income):

The Included in income amount can be calculated using the following formula:

=> Included in Income = (Received amount - Return on Capital ) (Edited to accomodate changes)

& Return on Capital = ( Received amount * Exclusion percentage ) (Edited to accomodate changes)

=> ROC = $8200 * 0.481 = 3944.2 (Edited to accomodate changes)

=> Included in income = ( $8200 )- 3944.2 = 4255.80 => 4256 ( Rounded off to nearest dollar amount)

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olga55 [171]

Answer: 1.621

Explanation:

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3 years ago
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Answer:

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3 years ago
Which of the following is a person who authorized an agent to act on his or her behalf ​
lina2011 [118]

Answer:

Principal

Explanation:

A power of attorney (POA) is a legal document giving one person (the agent or attorney-in-fact) the power to act for another person (the principal).

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3 years ago
Fred is on trial for robbing Sam's Electronics. The prosecution alleges that Fred broke into the warehouse behind the store and
harkovskaia [24]

Answer:

a. Show her the list and then take it away and have her testify from her 'refreshed recollection.'

Explanation:

In the given scenario Gloria testifies that when she came to work the day after the robbery, she noticed that large amounts of inventory were missing. She spent the entire day cataloguing the missing items.

In the trial she said she can remember what was stolen.

Under rule 612 the prosecutor is allowed to.show her the list and them take it away. Gloria can now testify from her refreshed memory.

On the other hand if she said she could recall the items the prosecutor would have under the hearsay exception (rule 803 (5)) requested she state the missing items.

But in this case she said she cannot recall the items

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According to liquidity preference theory, equilibrium in the money market is achieved by adjustments in
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According to Liquidity preference theory money is considered as 'liquid' meaning that liquidity preference is the demand for money.

According to this theory if our investments are more liquid then we ought to cash in for full value as cash is often accepted as most liquid asset.

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