P is single, 65 years old, and retired. On August 1, 2008, he purchased a single-premium deferred life annuity for $40,000 using after-tax funds. This year, P received $5,000 in annuity benefits. He will receive a like amount each year for the rest of his life.

a. Calculate Ps taxable income from the annuity for the current year.

b. Calculate Ps taxable income from the annuity for year five.

c. Calculate Ps taxable income from the annuity for year 22.

d. Assume P lives just 15 more years. Calculate the deduction that would be allowed on Ps final tax return.

e. Assume the annuity was purchased by P and his employer jointly. P contributed $12,000 in after-tax funds, and the employer contributed $28,000. Calculate Ps taxable income from the annuity for the current year.