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Anne purchased an annuity from an insurance company that promised to pay her $20,000 per year for the next 10 years. Anne pa $145,000
Anne purchased an annuity from an insurance company that promised to pay her $20,000 per year for the next 10 years. Anne pa $145,000 for the annuity, and in exchange she will receive $200,000 over the term of the annuity. Required: a. How much of the first $20,000 payment should Anne include in gross income? Note: Do not round intermediate calculations. b. How much income will Anne recognize over the term of the annuity? Complete this question by entering your answers in the tabs below. Required A Required B How much of the first $20,000 payment should Anne include in gross income? Note: Do not round intermediate calculations. Amount to be included in gross income Required A Required B >
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