Godfrey Is Age 77

question 101

Multiple Choice

Godfrey is age 77.He paid $240,000 for a single life annuity contract that will pay him $28,800 per year for life.The taxable amount of the first $28,800 payment is

• A)$7,371.
• B)$8,965.
• C)$17,479.
• D)$21,429.

---

Definitions:

Imipramine

A tricyclic antidepressant medication used to treat depression and certain anxiety disorders by increasing the activity of certain chemicals in the brain.

Lithium

A chemical element used as a medication to treat mood disorders such as bipolar disorder by stabilizing mood swings.

Risperidone

An antipsychotic medication commonly used to treat schizophrenia, bipolar disorder, and irritability associated with autism.

Major Depressive Disorder

A mental health disorder marked by persistent feelings of sadness, worthlessness, and a lack of interest in daily activities.