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Eight years ago, Amy purchased an annuity contract for $80,000. This year, she received her first payment on the annuity. The payment amount was $16,000.

Eight years ago, Amy purchased an annuity contract for $80,000. This year, she received her first payment on the annuity. The payment amount was $16,000. The annuity started to pay on January 1 and she received a full first years payment. It will pay her $16,000 per year for ten years beginning this year. How much should she include in gross income for one year?

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