Multiple Choice - 60 point section (15 Questions - 4 points each) Choose the most appropriate answer. Choosing more than one answer will result in an incorrect response. READ THE QUESTIONS CAREFULLY and make sure you put your name on your word document and include the heading "EXAM 2". 1. Joseph Menendez is received his very first annuity payment this year in the amount of $5,000. He will continue to receive these $5,000 payments for the next 19 years. If the taxable portion of each of these $5,000 payments is $4,250, what must have been his original investment in this annuity? a. $15,000 b. $85,000 c. $100,000 d. None of the above 2. Maggie and Joe are married and file MFJ. They receive a combined $11,000 of social security benefits each year. In 2019, they had Modified AGI of $39,000. Using the Tier 1 calculation ONLY, what is the taxable portion of their social security benefits? a. $3,500 b. $5,500 c. $7,000 d. None of the above 3. Bryan is 38 years old and is enrolled in group term life insurance policy through his employer. If Bryan dies while he is covered under this policy, his beneficiary will receive $100,000 in benefits. In 2019, the cost of this policy is $0.22 per month per $1,000 of coverage. How much of this cost can Bryan include from his gross income in 2019? Answers are rounded to the nearest whole dollar. a. $3 b. $11 c. $132 d. $264 4. For most employee benefits received, including fringe benefits, discrimination is NOT allowed. However, which of the following benefits could still be excluded from the employee's gross income even though discrimination occurs within the employer's plan? In other words, which of the following benefits is discrimination allowed? a. Cafeteria Plans b. Parking Allowance c. Education Assistance Programs d. None of the above