19. Terri purchased an annuity for $100,000. She was to receive $10,000 per year and her life expectancy was 20 years. She died after receiving eight payments. Terris final return should reflect a loss of $20,000 ($100,000 $80,000).

25. Ji-ho, a single individual, took an itemized deduction of $5,500 for state income tax paid in 2021. His total itemized deductions in 2021 were $18,000 and did not include any other state or local taxes (the standard deduction for 2021 was $12,400). In 2022, he received a $900 refund of his 2021 state income tax. Ji-ho must include the $900 refund in his 2022 Federal gross income in accordance with the tax benefit rule.

27.

In 2020 Todd purchased an annuity for $150,000. The annuity is to pay him $2,500 per month for the rest of his life. His life expectancy is 100 months. Which of the following is correct?

	a.	Todd is not required to recognize any income until he has collected 60 payments (60 $2,500 = $150,000).
	b.	If Todd collects 20 payments and then dies in 2022, Todds estate should amend his tax returns for 2020 and 2021 and eliminate all of the reported income from the annuity for those years.
	c.	For each $2,500 payment received in the first year, Todd must include $1,000 in gross income.
	d.	For each $2,500 payment received in the first year, Todd must include $1,500 in gross income