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Mario, age 65, purchased an immediate annuity for 120,000$ that pays a lifetime monthly income of 1,000$. The annuity has no refund feature. Based on

Mario, age 65, purchased an immediate annuity for 120,000$ that pays a lifetime monthly income of 1,000$. The annuity has no refund feature. Based on the IRS actuarial table, Mario has a life expectancy of 20 years. If Mario receives 12 monthly payments of 1,000$ the first year, how much taxable income must he report on his tax return?

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