Listen Alan used unregistered funds to purchase a deferred annuity this year with payments to commence four years from now. Which of the following statements is FALSE? Alan must include the interest Income earned during each year in his taxable income. Alan must only include the interest portion of the payment in his taxable income when he begins receiving the payments. Alan must include the total amount of the deferred payment in his taxable income. Alan does not have to include the principal portion of the payments in his taxable income. Varga, aged 70, has two annuities. Annuity A was purchased with $400,000 from funds in her RRSP. Annuity B was purchased with $20,000 from non-registered savings. Varga received a payment of $5,000 from Annuity A and $300 from Annuity B. Which of the following statements is TRUE? Varga must not include all of the $5,300 in payments from both annuities in her total income. All income received from Annuity B is taxable, but only the interest portion from Annuity A Is taxable Varga cannot purchase an annuity with funds from her self-directed RRSP The income from Annuity A is not eligible for the pension credit