Exercise $4-27($Algorithmic$)($L$.$O$.4)$

A taxpayer, age $64,$ purchases an annuity from an insurance company for $$72,000.$ She is to receive $$600$ per month for life. Her life expectancy is $20\mathrm{.}8$ years from the annuity starting date. Assuming that she receives $$7,200$ this year, how much is included in her gross income?

Round any percentages to two decimal places. Round the final answer for the income to the nearest dollar.

Exdusion percentage: $\%$

Included in income: $$

Fexdback

Thedk loy Work

Annuity contracts generally require the purchaser $($the annuitant$)$ to pay a fixed amount for the right to receive a future stream of payments. Typically, the issuer of the contract is an insurance company and will pay the annuitant a cash value if the annuitant cancels the contract.

Exercise $4-27($Algorithmic$)($LO$.4)$

A taxpayer, age $64,$ purchases an annuity from an insurance company for $$72,000.$ She is to receive $$600$ per month for life. Her life expectancy is $20\mathrm{.}8$ years from the annuity starting date. Assuming that she receives $$7,200$ this year, how much is included in her gross income?

Round any percentages to two decimal places. Round the final answer for the income to the nearest dollar.

Exdusion percentage: $\%$

Included in income: $$ x

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$T$ Chock My Work

Annuity contracts generally require the purchaser $($the annuitant$)$ to pay a fixed amount for the right to receive a future stream of payments. Typically, the issuer of the contract is an insurance company and will pay the annuitant a cash value if the annuitant cancels the contract.