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2. John purchased in year 1 an annuity for $150,000 which provides for payments of $25,000 a year for 10 years, beginning in year

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2. John purchased in year 1 an annuity for $150,000 which provides for payments of $25,000 a year for 10 years, beginning in year 2. How much of Eric's year 2 payment is excluded from gross income? (15 points)

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