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1. John purchased an annuity from AAA Insurance Co. in 2011 when he was 50...

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1. John purchased an annuity from AAA Insurance Co. in 2011 when he was 50 years old. John paid $ 32,400 for the annuity. The annuity will start paying John S 800 per month starting on 7/1/21 when John turns age 60. Payments are for a 15- year fixed period. a. How much gross income will John report from this annuity in 2021? 2. Ten year ago, Mary purchased a Life Annuity that will pay her $ 9,000 per year ($ 750 per month) starting at age 68. The cost of the annuity is $ 47,520. a. How much gross income will Mary report in 2021 when she turns age 68 and starts receiving payments on 1/1/2021)? b. How much gross income will Mary report as gross income in 2041? 3. Mary is single, age 40 and received a $ 1,250 reimbursement from her medical insurance company in 2021. Determine how much gross income (if any) Mary will recognize under the following situations: a. The reimbursement was for 2021 medical bills that Mary paid in 2021. b. The reimbursement was for 2020 medical bills that Mary paid in 2020 and Mary used a standard deduction in 2020? c. The reimbursement was for 2020 medical bills that Mary paid in 2020. Mary itemized deductions in 2020. Her Itemized deductions totaled $ 15,000 which included allowable medical expenses of $ 600

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