Erwin works for Close Corporation for 24 years. Close has a qualified, noncontributory pension plan that pays

Question:

Erwin works for Close for 24 years. Close has a qualified, noncontributory pension plan that pays employees with more than 5 years of service $100 per month per year of service when they reach age 65. Erwin turns 65 in February of this year and retires in June. Payments from Close's plan begin in July. In preparing for his retirement, Erwin purchased an 15 years ago for $26,000.
The pays $775 per month for life beginning at age 65. Erwin begins receiving the payments in March. How much gross income does Erwin have from the receipt of the payments from Close and the in the current year?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Corporation
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