Question
Eight years ago, Melissa purchased an annuity contract for $88,000. She received her first annuity payment on January 1, 2021. The annuity will pay Melissa
Eight years ago, Melissa purchased an annuity contract for $88,000. She received her first annuity payment on January 1, 2021. The annuity will pay Melissa $15,000 per year for 10 years (beginning with this year). The $15,000 payment was reported to Melissa on Form 1099-R for the current year.
How much does she need to include as a interest earned from annuity this year on her tax return?
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th edition
978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286
