QUESTION 14 Danny Nawrocki purchased an annuity for $120,000. The annuity pays $18,000 a year for 10 years. How much of each payment must Danny include as gross income? QUESTION 15 Kathy Zvinakis sold a piece of rental property for $210,000 and paid the real estate agent $8,000 in fees. She purchased the property for $170,000 several years ago and deducted $40,000 of depreciation on her tax returns over her years of ownership. What gain should Kathy recognize on the sale? QUESTION 16 Last year, Noor reported $13,500 in itemized deductions including $6,500 of state income taxes paid (his standard deduction was $12,400). In March of this year, Noor received a $2,000 refund of the state income taxes paid last year. How much of the refund should be included in Noor's gross income this year? QUESTION 17 Jake Thornton sold stock for $20,000 that he had purchased for $25,000 and held in a regular account for several years. Jake also received $2,500 in dividends from Stock ABC held in a regular account and $1,000 in dividends from Stock XYZ held in a qualified retirement account. How do these items affect his taxable income for the year (do not enter a $ sign, and clearly indicate with a negative sign if it is a loss): Ordinary Income: Income taxed at preferential rate: