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LO2 Hank retires this year after working 30 years for Local Company. I'er the terms...

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LO2 Hank retires this year after working 30 years for Local Company. I'er the terms of his employment contract, Hank is to receive a pension of $600 per month for the rest of his life. During the current year, he receives 7 pension payments from Local. At the time of his retirement, Hank is single and 67 years old. How much taxable income does Hank have it his employer's plan was noncon tributory (ie. Local Company paid the entire cost of the plan; Hank made no contributions to it b. How wotild your answer change if Hank had contributed 542,000 to the pen sion plan? Assume that the S42,000 had been included in Hank's income (ie.. he has already paid tax on the S42,000). What if Hank had contributed $42.000 to the plan and none of the $42.000 were taset (ic., the tax law allows certain pension contributions to go untaxed during the contribution period)

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