Samuel, who is single, retired, and 66 years old, purchased an annuity during this working years jointly with his employer. Samuel contributed $240,000 of after-tax funds to the annuity, while his employer contributed $60,000 of before-tax compensation. Under the terms of the annuity, Samuel is to receive $4,000 every month for life. Based on actuarial tables published by the Treasury, Samuel's life expectancy multiple is 19.2. Assuming that Samuel receives $48,000 from the annuity in 2020, how much income from the annuity must he report?

$32,375

$35,500

$15,625

$12,500