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Problem 4 - 5 1 ( Algorithmic ) ( LO . 4 ) Pam retires after 2 8 years of service with her employer. She
Problem AlgorithmicLO
Pam retires after years of service with her employer. She is years old and has contributed $ 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 $ per month for
the remainder of her life.
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a Assume that Pam retired in June and collected six annuity payments that year. What is her gross income from the annuity
payments in the first year?
$
b Assume that Pam lives years after retiring. What is her gross income from the annuity payments in the twentyfourth year?
$
c Assume that Pam dies after collecting 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: $
Loss deduction:
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