Apple purchased an annuity for $25,920 on December 31, 2020. Under the contract, she will receive $400 each month for the rest of her life (beginning in January of 2021). Assume that the IRS tables indicate that Apple will live to receive 108 payments.

a. Calculate Apple's income from the annuity in 2021.

b. Calculate Apple's income from the annuity in 2032 (assume she lives past the year 2032).

c. Instead, assume Apple dies in June of 2026 (after receiving six annuity payments in 2026). What amount of income and/or loss would be reported on Apple's 2026 return?