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Arthur paid a $100,000 single premium for his annuity. Five years later, he took a $25,000 distribution, of which $20,000 was considered taxable income. Arthur

Arthur paid a $100,000 single premium for his annuity. Five years later, he took a $25,000 distribution, of which $20,000 was considered taxable income. Arthur took no other distributions. What is Arthur's investment in the contract for tax purposes after the distribution? (Search Chapter 2)

a. $75,000

b. $80,000

c. $95,000

d. $100,000

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