why number id anticipated payment js 210?

oblem 4-52 (LO.4) ram retires after 20 years of service with her employer. She is 66 years old and has contributed $42,000 to her employer's qualified pension fund. She elects to receive her retirement benefits as an annuity of $3,000 per month for the remainder of her life. Click here to access Exhibit 4.1 and Exhibit 4.2. a. Assume that Pam retired in June 2018 and collected six annuity payments that year. What is her income from the annuity payments in the first year $ 16,800 Annuity contracts generally require the purchaser (the annultant) to pay a foved amount for the right to receive a future stream of payments. No income is recognized by the annuitant at the time the cash value of the annuity increases because the taxpayer has not actually received any income. The tax accounting problem associated with receiving payments under an annuity contract is one of apportioning the amounts received between recovery of capital and income Answer $15,000. The a utant can exclude from income as a recovery of capital the proportion of each payment that the investment in the contract bears to the expected return under the contract. The expected return is the annual amount to be paid to the annuitant multiplied by the number of years the payments will be received. When payments for the taxpayer gener must the annuity table published by the IRS to determine the expected return (see Exhibits 41 and 42). The expected return is calculated by multiplying the appropriate multiple (e expectancy) by the annual payment. The exclusion rate applies the autanta recovered his or her ment in the contract Coher e nt) - 542.000 Check My Wond 8 Previous Next Q Search or enter website name