How much of first ent should larry include

Assignment Help Financial Accounting

Reference no: EM13131766

This year Larry received the first payment from an annuity that promises to pay him $3,000 per month for the rest of his life. The IRS tables indicate that given Larry's age, he should expect to receive 310 monthly payments. The cost of the annuity to Larry was $620,000. How much of the first $3,000 payment should Larry include in gross income?

Reference no: EM13131766

Questions Cloud

Basics of consolidated statements : Emron Company owns a 100% interest in the common stock of the Dietz Company. On January 1, 20X2, Emron sold Dietz a fixed asset that Dietz will use over a 5-year period. The asset was sold at a $5,000 profit. In the consolidated statements, this p..

Differentiation and newton-raphson method : A control system has a time constant, τ ( = 1/t)), where t satisfies the equation 10e-2t = 2Sin2t + 3. Show that this equation has a solution between t = 0 and t = 1.

Illustrate what is the fair price : The yield to maturity on new issues of similar corporate bonds is 5.2%. Someone offers you $1,225 for your bond. Is this a fair price, to you the seller? Illustrate what is the fair price?

Find probability that seven of the men say no : Welcome a woman taking the initiative in asking for a date. What is the probability that seven (7) of the men say NO.

How much of first ent should larry include : he should expect to receive 310 monthly payments. The cost of the annuity to Larry was $620,000. How much of first $3,000 payment should Larry include in gross income?

William shakespeare : Like as the waves make towards the pebbled shore,So do our minutes hasten to their end;Each changing place with that which goes before,In sequent toil all forwards do contend.

Tax effects of transactions : Penny, Miesha, and Sabrina transfer property to Owl Corporation for 75% of its stock. Nancy, their attorney, receives 25% of the stock in Owl for legal services rendered in incorporating the business. What are the tax consequences of these transac..

Compute the quick and current liquidity ratios : Compute the quick and current liquidity ratios, the DuPont ratio, profit margin, asset utilization, and financial leverage for your chosen company.

How many grams of nitrogen gas are produced : When 5.00 × 1022 molecules of ammonia react with 4.00 × 1022 molecules of oxygen, how many grams of nitrogen gas are produced? 4NH3(g) + 3O2(g) → 2N2(g) + 6H2O(g)

User Account

All Pages