Charles Bought an Annuity for $30,000 Several Years Ago

question 138

Multiple Choice

Charles bought an annuity for $30,000 several years ago. The annuity will pay him $250 per month from age 62 until he dies. During the current year, Charles turns 62 and receives his first annuity payment.
I.If Charles dies after receiving 192 monthly payments, he must amend prior returns and correct the income reported based on 192 monthly payments.
II.If Charles receives more than 260 payments, the total of each payment received after the 260^th payment is included from income.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Pacinian Corpuscles

Specialized nerve endings in the skin and visceral organs sensitive to pressure and vibration.

Meissner Corpuscles

Specialized nerve endings found in the skin that are responsible for sensitivity to light touch.

Ruffini End Organs

Sensory receptors in the skin and fascia that detect stretch and twists, contributing to the kinesthetic sense and control of finger position and movement.

Hair Follicle Receptors

Sensory nerve endings around the base of hair follicles that detect touch or movement on the skin's surface.