EXHIBIT 5-1 Table for Expected Return Multiple for Ordinary Single-Life Annuity Age at Annuity Starting Date Expected Return Multiple 68 17.6 69 16.8 70 16.0 71 15.3 72 14.6 Required Information Problem 5-52 (LO 5-2) (Algo) [The following information applies to the questions displayed below.) Larry purchased an annuity from an Insurance company that promises to pay him $500 per month for the rest of his life. Larry pald $48,180 for the annuity. Larry is in good health and is 72 years old. Larry received the first annulty payment of $500 this month. Use the expected number of payments In Exhibit 5-1 for this problem. Problem 5-52 Part-c (Algo) c. What are the tax consequences of Larry dies just after he receives the 100th payment? Answer is not complete. Amount to be deducted Fred currently earns $9,700 per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His employer is willing to pay Fred $10,700 per month if he accepts the assignment. Assume that the maximum foreign-earned Income exclusion for next year is $108,700. Problem 5-62 Part-a-2 (Algo) a-2. If Fred's employer also provides him free housing abroad (cost of $20,700), how much of the $20,700 is excludable from Fred's Income? Amount to be excluded S 4,492