Problem $4-55($Algorithmic$)($LO$.4)$

Pam retires after $28$ years of service with her employer. She is $66$ years old and has contributed $$26,250$ 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 $$2,625$ per month for

the remainder of her life.

Click here to access Exhibit $4\mathrm{.}1$ and Exhibit $4\mathrm{.}2.$

a$.$ Assume that Pam retired in June $2023$ and collected six annuity payments that year. What is her gross income from the annuity

payments in the first year?

$

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b$.$ Assume that Pam lives $25$ years after retiring. What is her gross income from the annulty payments in the twenty$-$fourth year?

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C$.$ Assume that Pam dies after collecting $160$ payments. She collected elght 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 annulty payments: $ $($

Loss deduction: $

Herbert was employed for the first six months of $2024$ and earned $$90,000$ in salary. During the next six months, he collected $$8,800$ of

unemployment compensation, borrowed $$12,000($using his personal residence as collateral$),$ and withdrew $$2,000$ from his savings

account $($including $$60$ of interest$).$ He received dividends of $$550.$ His luck was not all bad; in December, he won $$1,500$ in the lottery on a

$$5$ ticket.

Indicate how much $($if any$)$ of each item is included in Herbert's gross income.

If your answer is zero enter $"$o$".$

Item

Salary

Unemployment compensation

Loan proceeds

Savings account withdrawal $($including interest$)$

Dividend income

Lottery winnings

Gross income

Amount Included in

Gross Income

$