Business, 06.10.2019 05:00 fdelacruz19

Harold receives a life annuity from his qualified pension that pays him 5,000 per year for as long as he lives. later this year harold will recover he remainder of his cost of the annuity. which of the following correctly describes how the annuity payments are taxed after harold has recovered the cost of the annuity? 1) harold will continue to apply the annuity exclusion ratio to determine the amount of each annuity payment includible in gross income. 2) harold will include the entire amount of each annuity payment in gross income after he recovers the cost of the annuity 3) the entire amount of each annuity payment is excluded from gross income after harold recovers his cost of the annuity. 4) harold must request that the irs calculate his exclusion ratio based upon a revised life expectancy. 5) all of these

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 19:50

The u.s. stock market has returned an average of about 9% per year since 1900. this return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year. if you invest $100,000 and you earn 6% a year on it, how much real purchasing power will you have in 30 years?

Answers: 2

Answer

Business, 22.06.2019 04:10

You are head of the schwartz family endowment for the arts. you have decided to fund an arts school in the san francisco bay area in perpetuity. every 5 years, you will give the school $ 1 comma 000 comma 000. the first payment will occur 5 years from today. if the interest rate is 5.9 % per year, what is the present value of your gift?

Answers: 1

Answer

Business, 22.06.2019 10:10

Karen is working on classifying all her company’s products in terms of whether they have strong or weak market share and whether this share is in a slow or growing market. what type of strategic framework is she using?

Answers: 2

Answer

Business, 22.06.2019 19:50

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.

Answers: 2

Answer

You know the right answer?

Harold receives a life annuity from his qualified pension that pays him 5,000 per year for as long a...

Questions