Jerry Purchased an Annuity Contract at the Beginning of 2002

question 12

Multiple Choice

Jerry purchased an annuity contract at the beginning of 2002 for $144,000.The contract specified that he and his wife would receive $1,000 per month for life.Jerry receives his first payment on February 1,2013 when he is 59 years old and his wife is 56 years old.What amount of gross income should Jerry and his wife report on their 2013 income tax return from this annuity contract?

• A)$ -0-
• B)$ 4,400
• C)$ 6,600
• D)$11,000

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Definitions:

Aphasia

A disorder resulting from brain damage to Broca’s area or Wernicke’s area that involves a loss or impairment of the ability to use or comprehend words.

Language Acquisition

The process by which humans gain the ability to perceive, comprehend, and produce language, typically during childhood.

Babble

The stage of language development in infants characterized by the production of repetitive syllables, often starting around the age of 6 months.

Underextension

A language development error where a child inappropriately restricts the use of a word to a narrower context than is typical.