Determine the tax-free amount of the monthly payment in each of the following instances. Use the life
Question:
Determine the tax-free amount of the monthly payment in each of the following instances. Use the life expectancy tables. Use Table I, Table III and Table V. SHOW ALL WORK!!
a. Person A is age 62 and purchased an annuity for $98,000. The annuity pays $2,200 per month for life.(Round exclusion percentage computation to one decimal place.)
b. Person B is 66 and purchased an annuity for $96,000. The annuity pays $1,750 per month for life. (Round exclusion percentage computation to one decimal place. Round your final answer to 2 decimal places.)
c. Person C is 55 and purchased an annuity for $56,000 that pays a monthly payment of $1,350 for 15 years.(Round exclusion percentage computation to one decimal place. Round your final answer to 2 decimal places.)
Table V-
AGE | MULTIPLE | AGE | MULTIPLE | AGE | MULTIPLE |
5 | 76.6 | 42 | 40.6 | 79 | 10 |
6 | 75.6 | 43 | 39.6 | 80 | 9.5 |
7 | 74.7 | 44 | 38.7 | 81 | 8.9 |
8 | 73.7 | 45 | 37.7 | 82 | 8.4 |
9 | 72.7 | 46 | 36.8 | 83 | 7.9 |
10 | 71.7 | 47 | 35.9 | 84 | 7.4 |
11 | 70.7 | 48 | 34.9 | 85 | 6.9 |
12 | 69.7 | 49 | 34 | 86 | 6.5 |
13 | 68.8 | 50 | 33.1 | 87 | 6.1 |
14 | 67.8 | 51 | 32.2 | 88 | 5.7 |
15 | 66.8 | 52 | 31.3 | 89 | 5.3 |
16 | 65.8 | 53 | 30.4 | 90 | 5 |
17 | 64.8 | 54 | 29.5 | 91 | 4.7 |
18 | 63.9 | 55 | 28.6 | 92 | 4.4 |
19 | 62.9 | 56 | 27.7 | 93 | 4.1 |
20 | 61.9 | 57 | 26.8 | 94 | 3.9 |
21 | 60.9 | 58 | 25.9 | 95 | 3.7 |
22 | 59.9 | 59 | 25 | 96 | 3.4 |
23 | 59 | 60 | 24.2 | 97 | 3.2 |
24 | 58 | 61 | 23.3 | 98 | 3 |
25 | 57 | 62 | 22.5 | 99 | 2.8 |
26 | 56 | 63 | 21.6 | 100 | 2.7 |
27 | 55.1 | 64 | 20.8 | 101 | 2.5 |
28 | 54.1 | 65 | 20 | 102 | 2.3 |
29 | 53.1 | 66 | 19.2 | 103 | 2.1 |
30 | 52.2 | 67 | 18.4 | 104 | 1.9 |
31 | 51.2 | 68 | 17.6 | 105 | 1.8 |
32 | 50.2 | 69 | 16.8 | 106 | 1.6 |
33 | 49.3 | 70 | 16 | 107 | 1.4 |
34 | 48.3 | 71 | 15.3 | 108 | 1.3 |
35 | 47.3 | 72 | 14.6 | 109 | 1.1 |
36 | 46.4 | 73 | 13.9 | 110 | 1 |
37 | 45.4 | 74 | 13.2 | 111 | 0.9 |
38 | 44.4 | 75 | 12.5 | 112 | 0.8 |
39 | 43.5 | 76 | 11.9 | 113 | 0.7 |
40 | 42.5 | 77 | 11.2 | 114 | 0.6 |
41 | 41.5 | 78 | 10.6 | 115 | 0.5 |
Fundamentals of Taxation 2015
ISBN: 9781259293092
8th edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone