Hamden Is Entitled to Receive Monthly Payments of $6,000 Over

question 90

Multiple Choice

Hamden is entitled to receive monthly payments of $6,000 over his life from his employer's qualified pension plan.The payments begin January 1,2016.He contributed $286,000 to the plan prior to his retirement at age 62.Using the simplified method,what amount of the payments will be excluded from Hamden's taxable income for 2016?

• A)$13,200.
• B)$0.
• C)$58,800.
• D)$72,000.

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Definitions:

ADH

Antidiuretic Hormone, a hormone that helps regulate water balance in the body by controlling the water concentration of urine.

Urine Output

The amount of urine expelled from the body, used as an important indicator of kidney and overall health.

Blood Pressure

The force of circulating blood on the walls of the arteries, a critical indicator of cardiovascular health.

Diencephalon

A structure that includes the thalamus and the hypothalamus. It is located between the cerebral hemispheres and is superior to the brain stem.