Mr. Jones, age 74, retired on May 31 of the current year and receives a monthly pension of $800 payable for life. His first pension check was received on June 15 of the current year. During his employment Mr. Jones had contributed $27,200 to the cost of his pension plan. How much of the pension amounts re-ceived may Mr. Jones exclude from taxable income in the current year?

(a) $1,190

(b) $1,360

(c) $4,410

(d) $5,600

Identify the correct response and then elaborate on why you chose that response and why you believe the others to be incorrect. Word count range: 200-250.