What is the amount of coverage the Kennedys have on their personal property under their homeowners insurance policy?

A)$20,000

B)$50,000

C)$100,000

D)$200,000

If Devin's nonqualified deferred compensation plan is informally funded, which of the following statements regarding his plan is CORRECT?

I. The assets funding the plan are owned by Magnum Corporation and are subject to the claims of its general creditors.

II. Any earnings generated on the assets funding the plan are taxed to Magnum Corporation.

A)I only

B)Neither I nor II

C)Both I and II

D)II only

Regarding the Kennedys' deferred variable annuity,

A)the insurer directs the cash value investment allocation.

B)The amount of growth during the accumulation stage is uncertain.

C)The contract fees will be less than if they owned a mutual fund.

D)the return credited to the contract is fixed.

This year, Devin and Lana withdraw $25,000 from their variable annuity to pay some unexpected bills. Assuming the annuity was issued in 2010, and the $125,000 balance in the annuity includes $50,000 in earnings, what is the amount of the $25,000 withdrawal that is subject to income tax?

A)$0

B)$5,000

C)$12,500

D)$25,000