On January 1, 1998, Erika Greene purchased a single premium annuity for $15,000 that will pay her $5,000 every year for life beginning on January 1, 2018. Based on actuarial tables published by the IRS, her life expectancy multiple is 10.a.What is the amount to be excluded in Erika's income for 2018?b.What is the amount to be excluded in Erika's income for the year 2028?

What will be an ideal response?


a.$15,000/ ($5,000 × 10) × $5,000 = $1,500 excluded from income.
b.Once Erika has recovered her original investment of $15,000 (after 10 years), all of the $5,000 is 
taxable and included in income; none of it is excluded.

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A. $209,000 and $191,470. B. $645,500 and $179,500. C. $179,500 and $98,500. D. $278,000 and $98,500. E. $278,000 and $179,500.

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The monthly fixed costs are $10,000 per month. The unit sales price is $75, and variable cost per unit is $35. Daytona wishes to earn an operating income of $25,000. Using the contribution margin ratio, calculate the total sales revenue that is needed. (Round intermediate calculations to five decimal places.) What will be an ideal response

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The Baldwin Locomotive Works Inc manufactures steam locomotives for North American railways. Selected financial information for Baldwin is provided in the table below

The CFO, Matthias Baldwin, wants to distribute $1B of cash by means of an extra dividend. What will the stock price be after the dividend? Baldwin Locomotive Works Inc Selected Financial Information Stock Price $62.725 Cash $1,000M Market Capitalization $9,408.75M Shares Outstanding 150M Debt $0 A) $56.06 B) $62.73 C) $68.73 D) $69.39 E) $72.26

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Holts Corporation has two divisions: Xi and Sigma. Data from the most recent month appear below:  XiSigmaSales$311,000 $346,000 Variable expenses$65,310 $169,540 Traceable fixed expenses$176,000 $135,000  The company's common fixed expenses total $78,840. The break-even in sales dollars for the company as a whole is closest to: 

A. $466,018 B. $606,715 C. $119,225 D. $487,491

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