Which of the Following Is a True Statement About the First

question 119

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:

Braided Stream

A network of river channels separated by small, often temporary, islands called braid bars, typically found in areas with high sediment supply.

Sinuosity

The measure of how much a river or stream meanders or the degree of its winding path.

Point Bar

A sedimentary formation consisting of alluvium, built up along the inner curve of rivers and streams beneath the slip-off slope.

Floodplain

An area of relatively smooth land adjacent to a stream channel that is intermittently flooded when the stream overflows its banks.