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Two years ago, Ben Baker purchased an annuity contract at a cost of $50,000, all of which he paid at the time of purchase. The
Two years ago, Ben Baker purchased an annuity contract at a cost of $50,000, all of which he paid at the time of purchase. The annuity pays a benefit of $420 per month. Assume that the expected return for Ben Baker is $70,000 over the ife of the annuity. How much income will Ben Baker report as gross income for the current year? 16. A $2,520 B 1,440 5,040 3,600 None of the above C E 17. During the current year, Dan Davis, a flight attendant, received wages of $30,0000. The airline provided transportation on a standby basis, at no charge, from his home in Detroit to the airline's hub in Chicago. The fair market value of the commuting flights was $5,000. Also that year, Dan received reimbursements, under an accountable plan, of $10,000 for overnight travel, but only spent $6,000. The excess was returned during the year.. Dan became disabled in November of the year and received worker's compensation of $4,000. What amount must Dan include in gross income on his Form 1040? A $30,000 B 34,000 35,000 37,000 None of the above Margaret earns $8,500 $9,000 as a security guard for a local department store. On August 1, Chris was laid off and he collected $4,000 in unemployment compensation through the end of the year. as a waitress in a local Pizza parlor. Chris, her husband, earned 18. How much gross income must Chris and Margaret include in gross income on their Form 1040 for the year. $17,500 19,500 21,500 18,500 C None of the above o
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