A taxpayer age 64 purchases an annuity from an insurance, Ask an Expert

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A taxpayer, age 64, purchases an annuity from an insurance company for $50,000. She is to receive $300 per month for life. Her life expectancy 20.8 years from the annuity starting date. Assuming that she receives $3,600 this year, what is the exclusion percentage and how much is included in her gross income? Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91697565

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