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Josh pays $120,000 for a single-life annuity that pays him $11,000 a year for life. Treasury Department tables estimate his expected remaining life at 15
Josh pays $120,000 for a single-life annuity that pays him $11,000 a year for life. Treasury Department tables estimate his expected remaining life at 15 years.
a. How much of each $11,000 payment must Charles report as gross income?
b. If Charles dies after receiving annuity payments totaling $77,000 over seven years, what happens to the unrecovered cost?
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