The income tax treatment of unsecured private annuties is based on all of the following principles except: Question 9 options: a) A portion of each annuity payment payable to the transferor is treated as return of basis, capital gain, and ordinary income. b) Income tax returns should be filed on behalf of the partnership created through the annuity agreement. c) Gain is equal to the difference between the present value af the annuity promised and the transferor's basis. d) The transferor's "investment in the contract" is the transferor's basis in the property