Problem related to additional life expectancy


In 1988, when Sherry was 55 years old with an additional life expectancy of 20 years, she purchased a single life annuity for $200,000 that was to pay her $15,000 per year for life starting in 1989. Sherry just received her $15,000 payment for 2011. How much of the $15,000 must Sherry include in income?

a. 0

b. $5,000

c. $10,000

d. $15,000

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Problem related to additional life expectancy
Reference No:- TGS065893

Expected delivery within 24 Hours