C. Annuities defined as a contract that pays a fixed Income Set regular intervals for a specific period al time - Amoral received later consist of : - - Excluded 2) 4 taxable among for the gain The investment (included Amount of Exclusion Annuity X Exclusion text Ratio Immodest in the contract Expected Returned Imes in Contract totax. amget paid amount to be received in the futureie expectancy involved Use actuarial tables . which awant based on life expectancy - If life expectancy is not involved Amost Included in GI total Amount Annuity Pit Exclude) $ Bonus EX 5. 24 Find amount Excluded per year amout included per year Show all your work.LE 5.24 Marvin Mariner retires at age 65. His annuity contract provides for him to receive $100 per month for life, His total premiums under the policy had been $14,400. Annual annuity payment ($100 x 12 months) $1,200 Multiple from Table 2, Age 65 20.0 Expected return ($1,200 x 20.0) 524,000 Marvin had an investment cost of $14,400 in the annuity and an expected return of $24,000. Therefore, the exclusion ratio was $14,400/$24,000 = 60%. Since he receives $1,200 a year, he may exclude from gross income $720 ($1,200 x 60%). Where payments are made quarterly, semiannually, or annually, the applicable multiple shown in Table 5 may be used. If Marvin received his first semiannual payment six full months after the annuity starting date, the adjusted multiple would be 19.8 (20.0 - 2). If Marvin were to receive $600 six months after his annuity starting date, his expected return would be $23,760 ($1,200 x 19.8). See Table 5