Which of the Following Is a True Statement About the First

question 18

Multiple Choice

Which of the following is a True statement about the first payment received from a purchased annuity?

• A) The payment is included in gross income.
• B) A portion of the payment is a return of capital.
• C) The payment can only be taxed in the year after the annuity was purchased.
• D) The payment is not taxed until the annuity payments cease altogether.
• E) None of these is a True statement.

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Definitions:

Taft-Hartley Act

A federal law enacted in 1947 that restricts the activities and power of labor unions in the United States.

Immigration Reform

Changes in policy intended to manage immigration and address issues related to immigrants effectively.

Control Act

Legislation or regulations designed to oversee and manage the operation and activities of a specific area or sector.

Legally Authorized

Officially permitted or sanctioned under the law.