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On October 1, 2017, Cruz purchased an annuity for $90,000 in post-tax dollars, effective immediately, that pays Cruz $500 a month until death. At the
On October 1, 2017, Cruz purchased an annuity for $90,000 in post-tax dollars, effective immediately, that pays Cruz $500 a month until death. At the date of purchase, Cruzs official life expectancy was 25 years. How much of Cruzs 2017 annuity payments should be included in Cruzs gross income for 2017?
a) $0 b) $900 c) $600 d) $1,500
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