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Larry purchased an annuity from an insurance company that promises to pay him $500 per month for the rest of his life. Larry paid



 

Larry purchased an annuity from an insurance company that promises to pay him $500 per month for the rest of his life. Larry paid $48,180 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of $500 this month. a. How much of the first payment should Larry include in gross income? Amount to be included in gross income

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