Answer: Ordinary income tax on earnings exceeding basis.
Explanation:
From the question, we are informed that a 60-year-old customer purchases a nonqualified variable annuity and withdraws some of her funds before the contract is annuitized.
The consequences of this action is that Ordinary income tax on earnings exceeding basis. It should be note that the distributions from a nonqualified plan had to do with return on original investment and income from the investment. Since there's defer of the income, it'll be taxable as an ordinary income.
Answer:
Points along and inside the PPF (Production Possibilities Frontier)
Explanation:
PPC stands for Production Possibility Curve, which measures or evaluates the maximum output of the two goods and that is using the fixed amount of input.
The point on the curve states how much or amount of each good is to produced when the resources are shifted or moved from making more of one good or less of the other one.
Therefore, the attainable production points on the PPC are the points that are inside and along the production possibilities Frontier (PPF).
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