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When Chuck was 32 years old, he purchased an annuity contract for $150,000. The contract was to pay $5,000 per year over his remaining life.

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When Chuck was 32 years old, he purchased an annuity contract for $150,000. The contract was to pay $5,000 per year over his remaining life. How much of the annuity payment that Chuck collects in the first year must he include in gross income? (the life expectancy for someone who is 52 years old is 31.3 years)

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