Julia, age 57, purchases an annuity for $33,600. Julia will receive $400 per month for the rest of her life. The expected return multiple is 20.0. At age 88, the amount that Julia may exclude from income is
A. $0.
B. $3,120.
C. $4,800.
D. $1,680.
Answer: A
You might also like to view...
The daily output required from an assembly line is 300 units. If the line operates 5 hr a day, what is the cycle time per unit?
A. 1 hr B. 4 min C. 1 min D. 25 s
Criminal acts under the Privacy Act are felonies
a. True b. False
The measurement principle, also called the cost principle:
A. Provides guidance on when a company must recognize revenue. B. Prescribes that a company report the details behind financial statements that would impact users' decisions. C. Prescribes that a company record the expenses it incurred to generate the revenue reported. D. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. E. Prescribes that accounting information is based on actual cost.
Adding gourmet coffee stations to my convenience store is expected to increase sales of my
breakfast sandwiches; however, the sales of breakfast sandwiches should not be included in the evaluation of the gourmet coffee project because only relevant, incremental cash flows should be considered.