Question

Alex is 60 years old and retired. This year Alex won $212,200 in the state lottery. Alex also received $20,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 15 years, for $157,500. Alex received $8,500 from part-time work during the year. Calculate Alex's gross income.

Answer 1

Alex's gross income is $230,200

Step-by-step explanation:

Lottery state prize = $212,200

For the annuity Alex received $9,500 because his percent taxable is 85%

$157,500 / 15 = $10,500 - $1,000 = $9,500

Part-time work income = $8,500

Alex's gross income = $212,200 + $9,500 + $8,500 = $230,200