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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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