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On december 31 2020, Bo bought an annuity for $72,000. the annuity pays $1000 per month starting on March 1 2021 and continues as long
On december 31 2020, Bo bought an annuity for $72,000. the annuity pays $1000 per month starting on March 1 2021 and continues as long as he lives. At the start of the annuity Bo had a life expectancy of 8 years. How much of the annuity will be included in Bo's 2021 taxable income ?
A. $7,500
B $2,500
C $8,333
D $1,667
E $10,000
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