51. lo.4 pam retires after 28 years of service with her employer. she is 66 years old and has contributed $42,000 to her employer’s qualified pension fund. she
elects to receive her retirement benefits as an annuity of $3,000 per month for the
remainder of her life.
a. assume that pam retires in june 2015 and collects six annuity payments this year. what is her gross income from the annuity payments in the first year?
b. assume that pam lives 25 years after retiring. what is her gross income from the annuity payments in the twenty-fourth year?
c. assume that pam dies after collecting 160 payments. she collected eight pay- ments in the year of her death. what are pam’s gross income and deductions from the annuity contract in the year of her death?

Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.