Anne purchased an annuity from an insurance company that promised to pay her $$26,000$ per year for

the next $10$ years. Anne paid $$187,200$ for the annuity, and in exchange she will receive $$260,000$ over

the term of the annuity.

a$.$ How much of the first $$26,000$ payment should Anne include in gross income?

Note: Do not round intermediate calculations.

Amount to be included in gross income