Question 40 of 75. On January 1, 2021, Denis Dupont, a single taxpayer who was age 69 at the time, began receiving monthly retirement benefits from his former employer's pension plan. Denis received the following Form 1099-R reporting the pension payments. Denis did not receive any distributions before the annuity start date. There is no survivor beneficiary. Based on this information, what amount will Denis recover tax-free in 2021? (Answer choices are below the image.) CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. MARQUEE BRANDS 232 STRAWBRIDGE DRIVE YOUR CITY, YS XXXXX PAYER'S TIN XX-XXXXXXX RECIPIENT'S TIN XXX-XX-XXXX RECIPIENT'S name DENIS DUPONT Street address (including apt. no.) 330 WEST 34TH STREET 1 Gross distribution 24,000.00 2a Taxable amount 2b Taxable amount not determined OMB No. 1545-0119 2021 Form 1099-R Total distribution 3 Capital gain (included in 4 Federal income tax box 2a) withheld 2,400.00 5 Employee contributions/ 6 Net unrealized Designated Roth contributions or insurance premiums $ 7 Distribution appreciation in employer's securities IRA SEP/ SIMPLE 8 Other Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAS, Insurance Contracts, etc. Copy B Report this income on your federal tax return. If this form shows federal income tax withheld in box 4, attach this copy to your return. 10 Amount allocable to IRR within 5 years Roth contrib. 11 1st year of desig. 12 FATCA filing requirement $ code(s) 7 % This information is being furnished to the IRS. City or town, state or province, country, and ZIP or foreign postal code 9a Your percentage of total 9b Total employee contributions YOUR CITY, YS XXXXX % $ 48,930.00 15 State/Payer's state no. 16 State distribution YS/ distribution 14 State tax withheld $ $ Account number (see instructions) 13 Date of payment 17 Local tax withheld 18 Name of locality 19 Local distribution $ 20500019963 Form 1099-R $ www.irs.gov/Form1099R Department of the Treasury-Internal Revenue Servic $0 $2,796 $21,204 $24,000 Mark for follow up