A cash-basis, calendar-year taxpayer purchased an annuity policy at a total cost of $20,000. Starting on January 1 of 2015, he began to receive annual payments of $1,500. His life expectancy as of that date was 16 years. The amount of annuity income to be included in his gross income for the taxable year 2015 is 2. 00. A. none B) $250 C. $1,250 D. $1,500 so