1)John, age 60, purchases an annuity from an insurance company for $90,000. He is to receive $500 per month for life. How much income must he recognize in the current year?

2)Emma, age 33 is single and has no dependencies. She earned $ 40,000 this year before she was fired for poor job performance. Emma subsequently received $3,000 this year in damages from a personal injury action. Prior to her firing, she injured her back upon lifting a file cabinet and received $5,000 in worker’s compensation. How much should Emma include in her gross income?

Answer rating: 100% (QA)

Question Emma age 33 is single and has no dependents She earned 40000 this year before she was fired ... View the full answer