Question

I need help answering questions 17-25 please!

17. At the age of 68, Seth elected a life and 10-year term certain option for the payout of his $100,000 annuity. All of the following statements are true EXCEPT: a. The annuity will make income payments for a minimum of 10 years. b. Seth will receive an income stream for as long as he lives. C. At Seth's death, his beneficiary will receive a minimum of $100,000. d. If Seth were to die at the age of 79, no payment would be made to a beneficiary. 18. Which of the following correctly describes the basic income tax treatment of nonqualified annuities? a. Contract principal is not subject to taxation; interest earnings are subject to taxation. b. Contract principal is subject to taxation; interest earnings are not subject to taxation. c. Neither contract principal nor interest earnings are subject to taxation. d. Both contract principal and interest earnings are subject to taxation. 19. The exchange of one annuity contract for another is a tax-free transaction under the rules of: a. IRC Section 72(t) b. FINRA Rule 2330 C. IRS Revenue Ruling 2003-51 d. IRC Section 1035 20. Lorraine invested $50,000 in a nonqualified deferred annuity at the age of 50. Three years later, the contract has grown to $64,000, and Lorraine takes a $5,000 withdrawal. The contract is still in its accumulation stage. Which of the following statements is true? a. The withdrawal is fully taxable. b. The withdrawal is not taxable. c. $4,000 of the withdrawal is taxable; $1,000 is tax free. d. $1,000 of the withdrawal is taxable: $4,000 is tax free. « Questions 1 - 10 Questions 21 - 25 >>

Answer 1

The answer for Question 17 is

C) At Seth's Death, his beneficiary will receive a minimum of $100,000

The detailed explanation is attached in below picture

Thanks

Question - 17 Answer: c) 04 Seth's death, his beneficiezny Wil Sueceive a minimum of $100000 | Reason Seth elected option to receive annuty for life with minimeem of 10 years papoul Thus the following option de tight with resped to optioh a) Annudy will make income payment for atleast 10 years o all 6) can get the i As per the option seth annuty till he lives d) The minimum teren of option is 10 years with maximum of as long as self live. Seth tool option af 68 years and minimumn it will be benefited to 78 years or on daath i.e 79 years. Thus beneficiary will not receive anything if he dice at 79 years. Thus the righe answer being exception of option is c) It is not contain that beneficiary will get $100000 on death of seth, it self died within 18 years, the beneficiary will get annuty else beneficiary will get nothing..