1 partha owns a qualified annuity that cost 52000 under the, Ask an Expert

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1. Partha owns a qualified annuity that cost $52,000. Under the contract, when he reaches age 65, he will receive $500 per month until he dies. Partha turns 65 on June 1, 2010, and receives his first payment on June 3, 2010. How much gross income will Partha report from the annuity payments in 2010?

2. LO2 Minnie owns a qualified annuity that cost $78,000. The annuity is to pay Minnie $650 per month for life after she reaches age 65. Minnie turns 65 on September 28, 2010, and receives her first payment on November 1, 2010.

a. How much gross income does Minnie have from the annuity payments she receives in 2010?

b. Shortly after receiving her payment on October 1, 2025, Minnie is killed in an automobile accident. How does the executor of Minnie's estate account for the annuity on her return for the year 2025?

c. Assume that the accident does not occur until November 1, 2034. How does the executor of Minnie's estate account for the annuity on her 2034 return?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91647600

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