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 is 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 gro...

The insurance company invests the amounts received from the annuitant and the income earned serves to increase the cash value of the annuity No income ...

A taxpayer, age 64, purchases an annuity from an insurance company for $50,000. She is to receive

Question:

A taxpayer, age 64, purchases an from an insurance company for $50,000. She is to receive $300 per month for life. Her life expectancy is 20.8 years from the 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.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...