User Account

All Pages

What is the exclusion ratio for the annuity

Assignment Help Accounting Basics
Reference no: EM132884614

Questions -

Q1. In September 2020, Bill and Linda, a married couple with $60,000 of modified adjusted gross income, cashed qualified Series EE U.S. Savings Bonds which they had purchased in 2012. The proceeds were used to help pay for their son's 2020 college tuition. They received gross proceeds of $3,500, representing principal of $3,000 and interest of $500. The qualified higher education expenses they paid in 2020 totaled $2,100. How much of the $500 interest can Bill and Linda exclude from gross income in 2020?

a. $0

b. $200

c. $300

d. $500

e. none of the above

Q2. Mr. W. is 66 years old and single. His income for 2020 consisted of the following:

Taxable pension $24,000

Taxable interest 2,000

Taxable dividends 4,000

Social security payments 10,000

Tax-exempt interest 7,000

What amount of W's social security benefits is taxable?

a. $5,000

b. $8,500

c. $11,300

d. $10,000

e. none of the above

Q3. Based on the following, how much should Ben Brenner include in income in his federal income tax return?

Jury award for damages received for physical injury: $12,000

Jury awarded punitive damages: $10,000 Money borrowed from a bank: 8,000

a. $10,000

b. $12,000

c. $22,000

d. $30,000

e. $0

Q4. Linda Smith paid $24,000 for a life-time annuity that will start when she is 65 years old. The annuity will pay $150 per month ($1,800 per year) for the rest of her life starting in January of the year that Linda reaches age 65. What is the exclusion ratio for the annuity and how much income does Linda have for a year during which she receives 12 monthly payments?

a. Exclusion ratio .333 and income of $1,200

b. Exclusion ratio .667 and income of $600

c. Exclusion ratio .667 and income of $1,200

d. Exclusion ratio .333 and income of $600

Q5. BWS Corporation pays the premiums on an $80,000 group-term life insurance policy on the life of its 45-year-old vice-president, Warren. What amount is includible annually in Warren's gross income based on the group-term life insurance?

a. $278.00

b. $144.00

c. $54.00

d. $29.00

e. $0

Reference no: EM132884614

Questions Cloud

Investment for the provision of internal training services : Calculate the return on investment for the provision of internal training services for the organisation by comparing the benefits of training against the costs
How does job rotation strategy motivating employees : How does job rotation strategy motivating employees?
Implementation of mbo within prt corporate events : Discuss what the implementation of MBO within PRT Corporate Events would entail, and outline the extent to which it will address the shortcomings of the existin
Generate teamwork and inter-departmental cooperation : In determining compensation Mix - why should Performance pay percentage should be at least the same as or larger percentage than the base pay percentage.
What is the exclusion ratio for the annuity : Linda Smith paid $24,000 for a life-time annuity that will start when she is 65 years old. What is the exclusion ratio for the annuity
Explain the concept of return on investment : Explain how feedback can be used to modify the delivery of human resource services and how that feedback can be collected.
Project management and project life cycle phases : Describe the systems and process approach to project management and project life cycle phase and Critically analyse project quality, including risks and project
Explain changes in societal demographics : Do you believe you should specifically target a more diverse candidate pool or do you believe diverse candidates will organically be part of the applicant mix d
Model for planned change to support hr strategy : Explain how you would use Lewin's Model for Planned Change to support HR strategy implementation.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd