Which of the following is correct regarding the federal income taxation of annuities that are purchased with after tax dollars?

A) Tax must be paid annually on the investment income that accrues during the accumulation period.
B) If funds are withdrawn during the accumulation period, they are taxed as ordinary income.
C) Payments received during the liquidation phase are partially exempt from taxation.
D) There is no tax since each payment is considered compensation for a loss (ie., retirement).


C

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What is the purpose of a political action committee, or PAC?

A) to ensure uniform registration of all lobbyists B) to provide funding to promote political lobbying C) to back the candidates that the American people want D) to serve the president in carrying out special projects

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For a continuous random variable x, the probability density function f(x) represents the

A. probability at a given value of x. B. area under the curve at x. C. area under the curve to the right of x. D. height of the function at x.

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Will decides to gift his wife a house for their 10th wedding anniversary. He contacts his real estate agent about a specific house that he wants to buy. The realtor assures him that he will contact the owners immediately to find out the asking price. The agent, however, informs Will about the price two months after the anniversary. The information provided by the agent is most likely to be useless because it lacked ________.

A. precision B. timeliness C. relevance D. sufficiency E. accuracy

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Assume that the custodian of a $450 petty cash fund has $57.10 in coins and currency plus $387.00 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

A. A credit to Cash for $392.90. B. A debit to Petty Cash for $387.00. C. A credit to Cash Over and Short for $5.90. D. A debit to Cash for $392.90. E. A debit to Cash for $381.10.

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