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21. Ming retired from his job as an IRS agent in 2019. He will receive a retirement annuity of $1,000 each month and his life

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21. Ming retired from his job as an IRS agent in 2019. He will receive a retirement annuity of $1,000 each month and his life expectancy is 150 months. He contributed $30,000 to the pension plan during his 35-year career, so his adjusted basis is $30,000. Jay collected 160 payments before he died. Which of the following is correct? a. The first $30,000 received is a nontaxable recovery of capital, and all subsequent payments are taxable. b. The first $120,000 he receives is taxable c. Since Ming is retired from a federal position, none of his payments are included in gross income. d. All of the last 10 payments he receives ($10,000) are taxable. e. None of these

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