Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $52,500 to her employer's qualified pension fund, all of which was taxable when earned. She elects to receive her retirement benefits as an annuity of $5,250 per month for the remainder of her life. Click here to access Exhibit 4.1 and Exhibit 4.2. a. Assume that Pam retired in June 2020 and collected six annuity payments that year. What is her gross income from the annuity payments in the first year? 210 X Feedbad Check My Work Annuity contracts generally require the purchaser (the annuitant) to pay a fixed amount for the right to receive a future stream of payments. No income is recognized by the annuitant at the time the cash value of the annuity increases because the taxpayer has not actually received any income. The tax accounting problem associated with receiving payments under an annuity contract is one of apportioning the amounts received between recovery of capital and income. b. Assume that Pam lives 25 years after retiring. What is her gross income from the annuity payments in the twenty-fourth year? 30,000 X c. Assume that Pam dies after collecting 160 payments. She collected eight payments in the year of her death. What are Pam's gross income and deductions, if any, from the annuity contract in the year of her death? Income from the annuity payments: S 12,500 X Loss deduction: 40,000 X Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $175,000, and it had a market value of $280,000 on the date of the transfer. Cecile sold the stock for $245,000 a month after receiving it. In addition Casper is required to pay Cecile $8,750 a month in alimony. He made five payments to her during the year. What are the tax consequences for Casper and Ceale regarding these transactions? If an amount is zero, enter "0". a. How much gain or loss does Casper recognize on the transfer of the stock? b. Does Casper receive a deduction for the $43,750 alimony paid? c. How much income does Cecile have from the $43,750 alimony received? d. When Cecile sells the stock, how much does she report? Cecile will report a of $