Your 66-year-old customer invested $35,000 in a nonqualified variable annuity. it now has a value of $55,000, and your customer wishes to make a random withdrawal of $30,000.
what is the tax liability that results if the customer is in the 28% tax bracket?
a) $8,400.b) $0.c) $2,800.d) $5,600

D) $5,600

Explanation:

Since the client has a nonqualified annuity, his/her payments were done on an after tax basis. That means that only the earnings would be subject to taxation, his/her basis is equal to his $35,000 investment.

If the client withdraws $30,000, only $20,000 will be taxed (= $55,000 - $35,000)  at his/her tax rate = $20,000 x 28% = $5,600

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi