Randolph is a single individual who always claims the standard deduction. Randolph received the following in the current year: 

1. Wages $32,000 Interest income from a corporate bond $500 Interest income from City of Montgomery bond $300 Qualified Dividends from Monster, Inc. $750 State tax refund from the previous years tax $625 What is Randolph’s gross income? 

2. Flowers, a married taxpayer, purchased an annuity for $64,000 that will pay $700 per month over the life of Flowers and Flower’s spouse. At the time of purchase, the couple’s joint life expectancy was 25 years. Flowers received payment beginning April 1, Year 1, amounting to $6,300 in the first year of the annuity contract. How much is includible in Flower’s gross income in the first year?