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Vinny purchased an annuity contract for $153,300 on April 30, 20X1. He is to receive $700 per month starting June 1, 20X1, and continuing for
Vinny purchased an annuity contract for $153,300 on April 30, 20X1. He is to receive $700 per month starting June 1, 20X1, and continuing for life. He has a life expectancy of 25 years. What is the amount of Vinny's annuity income that must be included in his gross income for 20X1?
a. $3,577
b. $1,323
C. $6,132
d. $2,268
e. None of the above
Please explain
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