1. Problem 5-51 part a. Anne purchased an annuity from an insurance company that promised to pay her $32,000 per year for the next 10 years. Anne paid $220,800 for the annuity, and in exchange she will receive $320,000 over the term of the annuity.

a. How much of the first $32,000 payment should Anne include in gross income? (Do not round intermediate calculations.)

Amount to be included_______________

b. How much income will Anne recognize over the term of the annuity?

Income recognized_______________________