Question: Amanda purchased a variable annuity and a fixed annuity in the same calendar year from the same insurer. She paid $50,000 for each contract. The

Amanda purchased a variable annuity and a fixed annuity in the same calendar year from the same insurer. She paid $50,000 for each contract. The cash value of the variable annuity has declined to $45,000, while the cash value of the fixed annuity has increased to $60,000. She took a $15,000 cash value withdrawal from the variable annuity; she had never previously taken a distribution from either annuity. How much of the withdrawal, if any, must she include in her income?

a. $0
b. $5,000
c. $10,000
d. $15,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Bud Bunyan opened Bunyan's Supply five years ago. Over the years he has been pleased with its performance, as sales and profits have steadily increased. Recently, however, Bud bas been having...

Amanda purchased a variable annuity and a fixed annuity in the same calendar year from the same insurer. She paid $50,000 for each contract. The cash value of the variable annuity has declined to...

Does anyone know where this article come from? I wanna cite it as a resource!! Thanks! 41 Auditing Insurance Companies 41.1 OVERVIEW OF THE INDUSTRY (a) Structure of the Industry, (b) Reinsurance,...

Hello, I need some assistance with the attached word document questions regarding the Disney financial report (also attached). MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING...

hey there, I was wondering if you can have a look at this one for me. See attached. MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management is responsible for establishing and...

Some direction to help me with this assignment. Thanks! MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management is responsible for establishing and maintaining adequate internal...

Pleasehelpwiththefollowingquestion:...

Please help with this question: Compute debt/equity and debt/ tangible net worth for 2015 and 2014. Is the change from 2014 to 2015 favorable or unfavorable? What do these ratios tell us about the...

hey there, I was wondering if you can have a look at this one for me. See attached. MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management is responsible for establishing and...

John, a computer hacker, set up a program to crack the five-digit password to his computer that he algorithm to reveal the password. had somehow forgotten. John used a(n) a. means-ends analysis b....

Answer the five questions in short answer format. A paragraph or two will be enough to answer the question. 1.Describe an industry that seems to have strong competitive rivalry ( besides the soft...

what is the name of the branch of accounting concerened with providing inside decision makers with accounting information used to help manage the company and make internal decisions

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...