A64-year-old taxpayer retires this year and receives the first payment on an annuity that was purchased several years ago. the taxpayer’s investment in the annuity is $97,500, and the annuity pays $1,000 per month for the remainder of the taxpayer’s life. based on irs mortality tables, the taxpayer is expected to live another 20 years. if the taxpayer receives $4,000 in annuity payments in the current year, the nontaxable portion calculated using the simplified method is:

(a) 0
(b) $1,500
(c) $1,400
(d) $4,000
(e) none of above

Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks

Interest is credited to a fixed annuity no lower than the variable contract rate contract guaranteed rate current rate of inflation prime rate

Kirnon clinic uses client-visits as its measure of activity. during july, the clinic budgeted for 3,250 client-visits, but its actual level of activity was 3,160 client-visits. the clinic has provided the following data concerning the formulas to be used in its budgeting: fixed element per month variable element per client-visitrevenue - $ 39.10personnel expenses $ 35,100 $ 10.30medical supplies 1,100 7.10occupancy expenses 8,100 1.10administrative expenses 5,100 0.20total expenses $ 49,400 $ 18.70the activity variance for net operating income in july would be closest to: