MODULE 33 TAXES: INDIVIDUAL 455

MULTIPLE-CHOICE ANSWERS'

1. c - - 46. c - - 91. a - - 136. b - 181. b

- - -
2. b - - 47. a - - 92. d - - 137. b 182. b
- - -
3. b - - 48. a - - 93. c - - 138. b - - 183. c
- - -
4. c - - 49. d - - 94. d - - 139. a - 184. a
5. a - - 50. d - - 95. a - - 140. b - - 185. 'c - -
- - -
6. d - - 51. b - - 96. d - - 141. a - 186. c
- - -
7. b - - 52. b - ,- 97. d - - 142. a - 187. b
-
8. d - -
- - 53. b - - 98. c - - 143. a -
-
188. d
-
9. a - - 54. b - - 99. d - - 144. d - 189. c -
- - -
10. d - - 55. c - - 100. c - - 145. d -
190. a
11. b - - 56. d - - 101. d - - 146. b - - 191. a - -
- - -
12. b - - 57. d - - 102. b - - 147. d 192. c
- - - -
13. c - - 58. d - - 103. c - - 148. b - 193. b
- - -
14. d - ~ 59. c - - 104. b - - 149. b - 1~4. b
-
15. c - - 60. a - - 105. c - - 150. d - - 195. a -
16. c - - -
- - ,61. a - - 106. b - - 151. a -
-
196. b
-
17. a - - 62. b - - 107. b - - 152. b - 197. a -
18. c - - 63. a - - 108. a - - 153. c -
- 198. c - -
- - -
19. a - - 64. d - - 109. c - - 154. a - 199. a
- - -
20. d - - 65. d - - 110. d - - 155. d - 200. c
- - -
21. c - - 66. d - - 111. a - - 156. c - 201. b
22. d - - 67. a - - 112. d - - 157. b - - 202. c - -
23. c - - 68. c - - 113. d - - 158. d - - 203. c - -
- - -
24. c - - 69. b - - 114. b - - 159. a - 204. c
- -
25. 'a - - 70. b - - 115. d - - 160. d - 205. d -
-
26. d - - 71. c - - 116. d - - 161. a - 206. a ._- -
27. c - - 72. a - - 117. c - - 162. a - - 207. a -
- - -
28. d - - 73. a - - 118. a - - 163. c - 208. d) -
29. c - - 74. c - - 119. d - - 164. b - - 209. a -
- - -
30. c - - 75. c - - 120. b - - 165. b - 210. c
- -
31. b - - 76. a - - 121. b - - 166. c - - 211. c -
32. b - - 77. d - - 122. a - - 167. b - 212. d - -
- - -
33. d - - 78. a - - 123. b - - 168. d - 213. d
- - -
34. b - - 79. c - - 124. a - - 169. c - 214. c
- - -
35. c - - 80. a - - 125, c - - 170. b - 215. a
- - -
36. a - - 81. b - - 126. b - - 171. c - 216. c
- - -
37. c - - 82. c - - 127. c - - 172. c' - - 217. d
- -
38. d' - - 83. b - ~ 128. c - - 173. a - 218. b
- - -
39.
40.
b
b
-
-
-
-
84.
85.
a
c
-
-
-
-
129. c
130. a
-
-
-
-
174. ,c
175. d
-
- - - 219. c
- -
41. c - - 86. d - - 131. a - - 176. a - -
-
42. d - - 87. c - - 132. b - - 177. d -
-
43. d - - 88. a - - 133. c - - 178. c -
-
44. d - - 89. c - - 134. c - - 179. c - 1st: /219 = % -
45. c - - -
- - 90. c - - 135. c - - 1EO. d - -
2nd: -'219 = - %

1.B-3. Annuities MULTIPLE-CHOICE ANSWER EXPLANATIONS

1.B-4. Life Insurance Proceeds
 2008
Received Excluded Included
2. (b) The requirement is to determine the amount of
$4,900 $700 '$4,200 life insurance proceeds that must be included in gross in-
2009 come by Decker, on the death of Fuller's parent. Life insur-
8,400 1,200 7,200
2010
8,400 1,200 7,200 ance proceeds paid because of the insured person's death are
generally excluded from gross income. However, the exclu-
sion generally does not apply if the insurance policy was
obtained by the beneficiary in exchange for valuable consid-
eration from a person other than the insurance company.
Here, Decker purchased the policy from Fuller for $25,000
and paid an additional $40,000 in premiums, so Decker must
include in gross income the excess of insurance proceeds

Explanation of how to use this performance record appears on page 12.

1. (c) The requirement is to determine the pension

(annuity) amounts excluded from income for 2008,2009,
and 2010. Brown's contribution of $12,000 will be
recovered pro rata over the life of the annuity. Under this
rule, $100 per month (12,000 7120 months) is excluded
from income.