Fifteen years ago, Mr. Fairhold paid $80,000 for a single-premium annuity contract. This year, he began receiving a $1,500 monthly payment that will continue for his life. On the basis of his age, he can expect to receive $499,200. Assume that on January 1,2027 , Mr. Fairhold's unrecovered investment in the annuity is $2,375. Required: a. How much of his total 2027 annuity payments ($18,000) are taxable? b. Assume that he dies in February after recelving only one $1,500 payment. What are the tax consequences on his final Form 1040 ? Complete this question by entering your answers in the tabs below. How much of his total 2027 annuity payments ($18,000) are taxable