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Mike paid a life insurer $105,000 in exchange for an immediate life annuity. Mike will receive $1,000 per month from the insurer, and his life

Mike paid a life insurer $105,000 in exchange for an immediate life annuity. Mike will receive $1,000 per month from the insurer, and his life expectancy is 20 years. Assume that Mike receives 12 monthly payments of $1,000 the first year. How much taxable income must he repor. Show all work

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