Betty purchased an annuity for $21,000 in 2007. Under the contract, Betty will receive $250 each month for the rest of her life. According to the actuarial estimates. Betty will live to receive 96 payments and will receive a 3% return on her original investment If Betty collets $3,000 for the first time in 2016, the $3,000 is treated as a recovery of capital and thus is not taxable. If Betty dies after collecting a total of 60 payments, she has an economic loss that is not deductible. If Betty lives to collect more than 96 payments, she must amend her prior years returns to increase her taxable portion of each payment received in the past. If Betty lives to collect more than 96 payments, all amounts received after the 96th payment must be included in her gross income. None of the above. Red, Inc. provides group term life insurance to all of its employee, Susan, a vice-president, received $200,000 of coverage for the year at a cost to Red, Inc. of $280. The Uniform Premiums (Based on Susan's age). 15 per month for $1,000 of protection. How much of this must Susan include in gross income this year? $0 $270.00 $360.00 $280.00 None of the above In September 2016, Thomas died. His wife was the beneficiary of his $50,000 life insurance policy. Thomas had paid $20,000 in premiums. His wife elected to collect the proceeds in ten equal installments of $6, 500 ($5,000 on the face amount of the policy and $1, 500 interest). Of the $6, 500 she collected in 2016, the nontaxable amount is: $0. $5,000. $1, 500. $6, 500. None of the above. Saul paid $16,000 premiums on his ordinary life insurance policy. He held the policy for 10 years and cashed it in prior to his death and received the cash-surrender value of $45,000. In the year Saul received the $45,000, he must include what amount in gross income? $0. $16,000. $45,000. $19,000. $29,000