Anne purchased an annuity from an insurance company that promised to pay her $20,000 per year for the next 10 years. Anne paid $145,000 for the annuity, and in exchange she will receive $200,000 over the term of the annuity

a. How much of the first $20,000 payment should Anne include in gross income? (Do not round intermediate calculations.)

Amount to be included in Gross income______?