Single taxpayer, Fred Winston, purchased an annuity contract for $20,000 in 2019. The annuity will pay him $110 per month for his life. Assume that Fred was age 59 on the effective date of the annuity; that it pays FRed $110 per month for his life; and that payments began on July 1, 2019. How much taxable gross income will Fred report on his 2020 Form 1040?

A. 800

B. 1,320

C. 660

D. 520

E. None of he above