true or false

Tina purchased an annuity for $100,000. She was to receive $10,000 per year and her life expectancy was 20 years.

She died after receiving eight payments. Tina's final return should reflect a loss of $20,000 ($100,000 - $80,000).

true or false

Jose and Erin divorced in 2023. Pursuant to the divorce agreement, Jose is required to pay Erin $20,000 of alimony each year. Jose earns $75,000 a year. Erin is required to include the alimony payments in gross income although Jose earned the income.

true or false

The J & A Partnership earned taxable income of $140,000 for the year. Bryan is entitled to 50% of the profits, but he withdrew only $60,000 during the year. Bryan's gross income from the partnership for the year is $60,000.

true or false

On January 1, 2023, an accrual basis taxpayer entered into a contract to provide termite inspection service each month for 24 months. The amount received for the contract was $2,400. The taxpayer reported $1,200 as income on its financial statement for 2023, and should do the same for its tax return.