At the age of 50, Lala gave money to the insurance company with an agreement that Lala would receive Rp. 2,000,000 at the end of each year until Lala died. The amount of money that Lala must give to the insurance company is ...
Q: T/F During life A, and A's employer each contributed $500,000 to a retirement plan established by…
A: Gross estate refers to the aggregate dollar amount of value of the assets of individual which is…
Q: After receiving an inheritance of $50,000 on her 21st birthday, Katlyn deposited the inheritance in…
A: The future value of deposit is the value of the current deposits on a future date based on the…
Q: Pam retires after 28 years of service with her employer. She is 66 years old and has contributed…
A: Given, Retirement Benefits = $3,000 per month
Q: Julia Baker died, leaving to her husband Brent an insurance policy contract that provides that the…
A: Present value: The value of today’s amount to be paid or received in the future at a compound…
Q: Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children,…
A: 1.Compute Charlotte' Taxable Income as shown below:
Q: wishes to provide herself, or her estate, with an income of $10,000 at the end of each year for 10…
A: Deposit A Amount = 10,000 End of year deposits N = 10 years Deposit B Amount = 10,000 End of year…
Q: Mr. Ernesto dela Cruz, had the following during the taxable year: • P1,500,000 for outliving his…
A: According the Philippines taxation there are some rules and procedures which are involved while…
Q: omeone who is currently 47 wants to retire when they are 65 years old with the amount of 520,000.…
A: Solution:- When an amount is invested, it earns interest. The amount initially deposited is called…
Q: Jamie is the beneficiary of P1,000,000 insurance policy. Instead of taking the money as lump sum,…
A: Given, Amount of insurance policy is P1,000,000 Term is 10 year 5% compounded annually.
Q: How much would Divya be required to include in her income for tax purposes?
A: RRIF stands for the retirement fund which is the acronym and each alphabet stand for R = registered…
Q: e Cecil C. Seymour is a 64-year-old widower. He had income for 2019 as follows: Pension from former…
A: Tax liability refers to the total amount of tax due to tax authority by an individual, corporation,…
Q: Felix is age 74 and his wife is age 73. He purchased a single life annuity contract that will pay…
A: A single life annuity contract is a contract that provides payment to only one person
Q: Alice, a widow, elected to receive t of a $70,000 face value life insurar the life of her
A: Tax refers to the mandatory charge levied on the money or income gained by an entity.
Q: Godfrey is age 77. He paid $240,000 for a single life annuity contract that will pay him $28,800 per…
A: Tax refers to the amount that is charged by the government from the individual and organization on…
Q: y the condition of a will, the sum of $ 2,000 is left to a girl to be held in trust fund by her…
A: Investment (PV) = $ 2000 Future value (FV) = $ 5,000 Annual interest rate = 8% Quarterly interest…
Q: Mr. Ernesto dela Cruz, had the following during the taxable year • P1,500,000 for outliving his…
A: According the Philippines taxation there are some rules and procedures which are involved while…
Q: Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years. If…
A: The accumulated amount can be calculated with the help of future value of annuity function
Q: Antonio Sy started working for the ABC Corporation on his 25th Birthday. Each month P30 was withheld…
A: Here,
Q: Nicanor, single, received the following in 2022: Proceeds of his life insurance paid at annual…
A: Proceeds of his life insurance paid at an annual premium of P15,000 within 25 years - P2,000,000…
Q: Daniela retired at the age of 65. The current balance in her Roth IRA is $200,000. Daniela…
A: Roth IRA can be defined as a retirement account for individuals which offers tax-free withdrawals of…
Q: After one year from the death of her husband, Nancy Matyas received the proceeds of life insurance…
A: Taxable Income:- It is the income on which one pays tax as per rate prescribed by the taxation…
Q: Old Granddad dies and you are the sole beneficiary of his $1M life insurance policy. The insurance…
A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…
Q: George purchased a life annuity for $5,000 that will provide him $125 monthly payments for as long…
A: Gross income of the person means income without taking any exemptions and deductions. After…
Q: d. On September 30, 2018, Ridge loaned $150,000 to his mother so that she could enter a nursing…
A: Taxable income is the amount of income computed to measure the amount of taxes to be paid to the…
Q: By the conditions of a will, the sum of ₱25,000 is left to a girl to be held in trust by her…
A: Dear student, we need to use NPER function in excel to solve this problem.
Q: Linda bought a life insurance policy whereby she insured herself for 1 million for a period of 10…
A: The gross income from the insurance policy is the difference between the maturity amount received…
Q: etirement for 20 years, a self-employed engineer deposits P6,000 every end of 3 months in a fund…
A: Given information : Time period (years) 20 Periodic deposits 6000 Payment quarterly…
Q: A mother of two wishes her twin siblings to withdraw an amount of P20,000 each year starting on the…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Dr Kapoor has contributed $10,000 yearly into an RRSP from age 25 to 50 (25 deposits). At age 50, he…
A: in this first we have to calculate retirement amount and from that we can get pension.
Q: Anne purchased an annuity from an insurance company that promised to pay her $11,000 per year for…
A: Part of each $11,000 payment represents a return of the original $87,450 investment, plus $22,550…
Q: Anne purchased an annuity from an insurance company that promised to pay her $20,000 per year for…
A: Each cash flow of $20,000 represents two amounts, one is return of original investment and one is…
Q: To prepare for his retirement in 13 years, Tekla deposited 10,000 in an account paying 9%. Nine…
A: We have certain age for retirement, and for that, we add an amount after some interval of time to be…
Q: Jane is 50 years old and has just sold an investment property. She would like to contribute some of…
A: Superannuation is the retirement scheme in which employee gets an amount at the end of his or her…
Q: Theresita Guadalupe insured his life with an insurance company. Under the contract, she will pay a…
A: In the given case , if theresita guadalupe dies on the 5th year, then income of beneficiary will be…
Q: A 67-year-old taxpayer retires this year and receives the first payment on an annuity that was…
A: Annuity Annuity is the investment which become payable after retirement and Investor receive the…
Q: Linda Smith paid $25,000 in premiums on a 20-year endowment policy on her life. The policy has a…
A: Taxable income to be included in case of endowment policy = face value of the policy - Premium…
Q: Susan bought an installment refund life annuity for $100,000 under received an annual periodic…
A: The answer is stated below:
Q: Carrie, age 55, is an employee of Rocket, Inc. (Rocket). Rocket sponsors a SEP IRA and would like to…
A: SEP IRA: As per IRS "Simplified Employee Pension Plan (SEP) IRA provides business owners with a…
Q: Amy earns an income of 50,000 this year as an employee of rooster enterprises. She pays the…
A: The gross income would result in the total amount of income which has been earned by any individual…
Q: arlotte (age 40) is a surviving spouse and provides all of the support of her four minor children,…
A: Every country has its own tax laws and rules. Everyone whose income exceeds the limit must pay a…
Q: When James retired as managing partner of “James and Jerry, CPAs,” he was entitled to a retirement…
A: Accounting - The process of keeping track of all financial transactions pertaining to a business is…
Q: By the conditions of a will, the sum of P20,000 is left to a girl to be held in a trust fund by her…
A: When the interest is computed on the principal balance along with the accumulated interest is…
Q: Theresita Guadalupe insured his life with an insurance company. Under the contract, she will pay a…
A: The question is related to the Insurance Contract. Income in respect of insurance contract will be…
Q: Juan Reyes inherited P280,000 on his 30th birthday. This he placed in his own pension fund (bank…
A: Compounding is a technique which is used to compute the future value (FV) of the present amount by…
Q: 0. Nicanor, single, received the following in 2022: Proceeds of his life insurance paid at annual…
A: Gross income refers to the income which involves the wages, retirement distributions, dividends,…
Q: Geoff purchased a life annuity for $4,800 that will provide him $100 monthly payments for as long as…
A: Income: Income includes all the income that belong to the taxpayer, both taxable and non-taxable.…
Q: A Civil Engineer deposited PHP7,000,000 on a bank that earns ten percent compounded annually. Seven…
A: CASE : As per the will of civil engineer, the children's home would accept the money in perpetuity…
Q: Robert and Nicole Gonzales, both age 26, have been married for four years and have no children.…
A: The emergency fund is also known as the contingency fund that creates by saving part of the income.…
Q: Gramps purchased a joint survivour annuity that pays $1100 monthly over his remaining life and that…
A: Annuity refers to the amount received or paid for a specified number of intervals in a specific…
Q: A couple received a $131,000 inheritance the year they turned 50 and invested it in a fund that…
A: Information Provided: Inheritance amount = $131,000 Interest rate = 6.4% compounded semi-annually…
Step by step
Solved in 2 steps
- Amando took out a life insurance policy for P1,000,000.00 naming his wife as beneficiary. Under the terms of the policy, the insurer will pay Amando the amount of P1,000,000.00 after the 2Oth year of the policy, or his beneficiary, should he die before that date. Amando outlived the policy and received P1,000,000.0O. The premiums paid on the policy was P250,000.00. How much is the taxable income? * P1,000,000 P750,000 O P250,000 ZeroFelix is age 74 and his wife is age 73. He purchased a single life annuity contract that will pay him $80,000 per year for life. The expected return on the contract is $1,128,000. $1,904,000. $1,056,000. $1,112,000.Linda bought a life insurance policy whereby she insured herself for 1 million for a period of 10 years. Annual premium amount is 50,000. After 10 years, she received from the insurance company the amount of 600,000. 65. How much is the gross income? A. ZERO B. 100,000 C. 600,000 D. 1,000,000 66. In the above problem, assuming Linda died on the end of the fourth year of the policy and the beneficiary received 1 Million from the insurance company, how much is the gross income recognizable? A. ZERO B. 200,000 C. 800,000 D. 1,000,000
- Mrs. A took out a life insurance policy for 500,000 naming her son as beneficiary. Under the terms of the policy, the insurer, Filipinas Insurance Corporation will pay Mrs. A the amount of 500,000 after the 25th year of the policy, or her beneficiary should she die before that date. Mrs. A outlived the policy and received the proceeds. The premium paid on the policy was 400,000. The proceeds from the life insurance policy of Mrs. A is Exempt from income tax Taxable to the extent of 100,000 Taxable in full Taxable to the extent of 400,000By the condition of a will, the sum of P 20,000 is left to a girl to be held in trust fund by her guardian until it amounts to P 50,000. When will the girl receive the money, if the fund is to be invested at 8% compounded quarterly?Anne purchased an annuity from an insurance company that promised to pay her $11,000 per year for the next 10 years. Anne paid $87,450 for the annuity, and in exchange she will receive $110,000 over the term of the annuity. a. How much of the first $11,000 payment should Anne include in gross income? (Do not round intermediate calculations.) b. How much income will Anne recognize over the term of the annuity?
- At age 60, a man established a trust fund of R20 000 which will pay his family a regular amount at the end of each month for 12 years after his death. If he dies at age 65, what monthly sum will the family receive if the fund earns 3% p.a. compounded monthly and if the first payment will be made 1 month after his death?Anne purchased an annuity from an insurance company that promised to pay her $20,000 per year for the next 10 years. Anne paid $145,000 for the annuity, and in exchange she will receive $200,000 over the term of the annuity. a.) How much of the first $20,000 payment should Anne include in gross income? (Do not round intermediate calculations.) Amount to be included $ b.) How much income will Anne recognize over the term of the annuity? Income Recognized $Anne purchased an annuity from an insurance company that promised to pay her $17,000 per year for the next 10 years. Anne paid $130,050 for the annuity, and in exchange she will receive $170,000 over the term of the annuity. Required: a. How much of the first $17,000 payment should Anne include in gross income? Note: Do not round intermediate calculations. b. How much income will Anne recognize over the term of the annuity?
- A woman was bequeathed a trust fund that pays $50,000 per year to her and to herdescendants forever. If the trust fund earns 3.5% interest, what is the amount of the trust fund?. Upon retirement, Geraldine will receive a lump sum of 666,666 but opted to receive instead a perpetuity. At 6%, find the perpetual payments; (A) at the beginning of each year; (B) due after 6 years; (C) at the end of each year.Carrie, age 55, is an employee of Rocket, Inc. (Rocket). Rocket sponsors a SEP IRA and would like to contribute the maximum amount to Carrie’s account for the plan year. If Carrie earns $14,000 per year from Rocket, what is the maximum contribution Rocket can make on her behalf to the SEP IRA? a. $3,500. b. $14,000. c. $19,500. d. $57,000.
