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9. 9 Melvin May, age 66, purchases a joint and survivor annuity at a cost of $400,000. The annuity will pay $2,000 per month to
9. 9 Melvin May, age 66, purchases a joint and survivor annuity at a cost of $400,000. The annuity will pay $2,000 per month to Melvin for his life and upon Melvin's death to his spouse, Mary. age 67, for the remainder of her life. The annuity payments begin immediately. How much gross income will Malvin report on Form 1040 for the first full year (twelve months) of annuity payments? A. $ 16,780 B. 0 C. 7,470 D. 7,120 E. None of the above
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