Chris, age 68, has an annuity upon which he will collect $8,000 in 2018. He originally invested $100,000 in the annuity. The annuity plan was set up for him to collect $40,000 annually for 10 years. How much of his annuity income is taxable in 2018? Use the general rule method to calculate the taxable amount. 1. 10,000 2. 6,000 3. 30,000 4. 2,000 5. 8,000
Total amount to be received | 400000 | =40000*10 |
Total amount taxable | 300000 | =400000-100000 |
Percentage of annuity taxable | 75% | =300000/400000 |
Taxable amount in 2018 | 6000 | =8000*75% |
Option 2 6,000 is correct |
Chris, age 68, has an annuity upon which he will collect $8,000 in 2018. He originally invested $100,000 in the annuity....
15. Tony is single and age 68. He had the following transactions in 2019: Salary Interest Income from First Bank Interest Income from New York City Bonds Bank loan (proceeds used to buy personal auto) Alimony paid (divorce was finalized in 2010) Loss on sale of stock (held for 2 years) Child support paid Gift from aunt Deductible Itemized Deductions $50,000 $ 1,200 1,000 10,000 12,000 ( 8,000) 6,000 20,000 10,000 Tony's taxable income is: a. $17,350 b. $19,000 c....
David K. Gibbs, age 37 and his wife Barbara, age 33, have two children Chris and Ellen, ages 4 and 12. David is employed as an engineer for an oil company, and his wife recently completed a degree in accounting and will begin working for a public accounting firm next year. David has compiled the following information for his 2018 tax return. For the current year, David received a salary of $170,000. His employer withheld Federal income taxes of $9,000...
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...
1. Todd, who works for a public accounting firm, had the following transactions for 2018: Salary $ 85,000 Moving expenses incurred to change jobs (12,000) Inheritance received from deceased uncle 300,000 Life insurance proceeds from policy on uncle’s life (Todd was named the beneficiary) 200,000 Cash prize from church raffle 3,000 Payment of church pledge (4,500) >> What is Todd’s AGI for 2018? 2. In 2018, Alice earns a salary of $55,000, has capital gains of $3,000, and receives interest...
Note: This problem is for the 2018 tax year. Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1112. Devon does not want $3 to go to the Presidential Election Campaign Fund. Devon's wife, Ariane, passed away in 2014. Devon's son, Tom, who is age 18, resides with Devon. Tom's Social Security number is 123-45-6788. Devon owns a sole proprietorship for which he uses the accrual method of accounting...
David K. Gibbs, age 37 and his wife Barbara, age 33, have two children Chris and Ellen, ages 4 and 12, David is employed as an engineer for an oil company, and his wife recently completed a degree in accounting and will begin working for a public firm next year. David has compiled the following information for his 2018 tax return. For the current year, David received a salary of $170,000. His employer withheld Federal income taxes of $9,000 and...
Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1112. Devon does not want $3 to go to the Presi-dential Election Campaign Fund. Devon’s wife, Ariane, passed away in 2014. Devon’s son, Tom, who is age 18, resides with Devon. Tom’s Social Security number is 123-45-6788. Devon owns a sole proprietorship for which he uses the accrual method of account-ing and maintains no inventory. His revenues and expenses for...
Abbas Ltd Basic Bookkeeping Mr Abbas has decided to set up in business selling football shirts in the market place. Following transactions took place from the start of the business: 1) He begins the business by putting £ 30,000 into a bank Account 2) Mr. Abbas borrowed £ 4,000 from his brother to purchase a motor van for the business. 3) Mr. Abbas buys a market stall and pays £ 5,000 in cash. 4) He buys some football shirts for...
John Barton is both excited and amazed. Excited because on graduating from college one year ago at age 22, he landed a good job with a commercial leasing firm and he is enjoying the work. His company has good benefits and has just given him a raise so that in his next (2nd) year of employment he will be earning $55,000 per year. He is amazed because even with this raise he feels that money is just as scarce as...
Just Need the C part.
2. This question is worth 25 points Fatima and Eric (both age 28), are married and file a joint tax return. They are cash basis taxpayers. 2018 income includes: 1. combined salary of $200,000 2. Fatima was in a car accident and received compensatory damages of $25,000 for her broken nose. She also received $10,000 in punitive damages 3.. Eric had a student loan. In 2018, when the balance was $23,000, the lender accepted a...