Which of the Following Statements Is Incorrect

question 100

Multiple Choice

Which of the following statements is incorrect?

• A)The exclusion ratio represents the proportion of each annuity payment that will be tax-free.
• B)If annuity payments are to be received for a fixed period,the taxpayer does not need to refer to the life expectancy tables provided by the IRS.
• C)To determine the taxable amount of each annuity payment,the taxpayer must know the cost of the contract.
• D)Once the cost of the annuity has been recovered,any remaining payments will be tax-free.

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Definitions:

Standards of Justice

Established benchmarks or principles used to evaluate the fairness or equity of actions or laws.

Sympathy Strike

A labor strike by workers in one union in support of workers in another union who are engaged in a dispute with their employer.

NFL

The National Football League, a professional American football league consisting of 32 teams, divided equally between the National Football Conference (NFC) and the American Football Conference (AFC).

Referees

Officials in sports contests responsible for enforcing the rules of the game, ensuring fair play, and in some contexts, mediating disputes between parties.