19. Emil Nelson paid $174,500 for an annuity that will pay him $1,300 per month for life. Based on Emil's age, his expected return is $405,813. This year, Emil received 12 puyments totaling $15,600. How much of this total is taxable income? A. $00. How much of this total is taxable income? B. $5,300 D. $6,708 20. Which of the following statements about annuity contracts is true? A. Annuity contracts provide a fixed income stream. B. Payments received from an annuity contract are tax-exempt C. Payments received from an C. Payments received from an annuity contract are fully taxable as ordinary income. 21. Mrs. Lindt exchanged 212 shares of Nipher common stock for 773 shares of Newland common stock. Her basis in the Nipher stock was $49,200, and the fair market value of the Newland stock was $138,000. Which of the following statements about the exchange is true? A. Mrs. Lindt's basis in her Newland stock is $138,000. B. Mrs. Lindt recognizes no gain on the exchange because she did not receive any cash. C. If the exchange is pursuant to a reorganization of Nipher and Newland, Mrs. Lindt recognizes no gain. D. None of the above is true. 22. Ten years ago, Elaine paid $10 per share for 2,000 shares of Lazlo common stock. This year, Elaine learned that Lazlo is in bankruptcy and can pay only 40% of its outstanding debt. What are the tax consequences to Elaine of Lazlo's bankruptcy? A. $20,000 long-term capital loss B. $12,000 long-term capital loss C. $20,000 ordinary loss D. No gain or loss 23. 24. The majority of individual taxpayers take the standard deduction rather than itemizing. TRUE or FALSE