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maingnat46
22.12.2020 •
Business
George purchased a life annuity for $5,200 that will provide him $80 monthly payments for as long as he lives. Based on IRS tables, George's life expectancy is 100 months. How much of the first $80 payment will George exclude from his gross income?
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Ответ:
$28
Explanation:.
Calculation for How much of the first $80 payment will George exclude from his gross income
First step is to calculate the return of capital per payment by using the annuity exclusion ratio
Annuity exclusion ratio =($5,200/($80*100))
Annuity exclusion ratio =($5,200/$8,000)
Annuity exclusion ratio = 65%
Therefore the return of capital per payment is be 65%
Now let calculate How much of the first $80 payment will George exclude from his gross income
Gross income exclusion=$80- (65%*$80)
Gross income exclusion=$80-$52
Gross income exclusion=$28
Therefore $28 of the $80 monthly payment will be excluded in the gross income
Ответ: