How much of the first payment should Larry include in Gross Income?

Required information [The following information applies to the questions displayed below. J Larry purchased an annuity from an insurance company that promises to pay him $1,500 per month for the rest of his life. Larry paid $144,540 for the annuity. Larry is in good health and is 72 years old. Larry received the rst annuity payment of $1,500 this month. Use the expected number of payments in Exhibit 5-1 for this problem. a. How much of the first payment should Larry include in gross income