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Anne purchased an annuity from an insurance company that promised to pay her $ 2 8 , 0 0 0 per year for the next

Anne purchased an annuity from an insurance company that promised to pay her $28,000 per year for the next 10 years. Anne paid $198,800 for the annuity, and in exchange she will receive $280,000 over the term of the annuity.
a. How much of the first $28,000 payment should Anne include in gross income?

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