Problem 16-15 (Algo) [LO 16-2] Fifteen years ago, Mr. Fairhold paid $40,000 for a single-premium annuity contract. This year, he began receiving a $1,100 monthly payment that will continue for his life. On the basis of his age, he can expect to receive $249,600. Assume that on January 1, 2027. Mr, Fairhold's unrecovered investment in the annuity is $1,650. Required: a. How much of his total 2027 annuity poyments ($13,200) are taxable? b. Assume that he dies in February after receiving only one $1,100 payment. What are the tax consequences on his final Form 1040