Juanita paid a life insurer $72,000 in exchange for an immediate life annuity. Juanita will receive $1,000 per month from the insurer, and her life expectancy is 15 years (180 months). Assume that Juanita receives 12 monthly payments of $1,000 the first year. How much taxable income must she report annually?

a. $7,200

b. $4,800

c. $6,000

d. $12,000

e. None of the above