Anne purchased an annuity from an insurance company that promised to pay her $20,000 per year for the next ten years Anne paid $145,000 for the annuity, and in exchange she will receive $200,000 over the term of the annuity a How much of the first $20,000 payment should Anne include in gross income...

a 5500 A part of each payment represents a return of the original 145000 investment an ...

Anne purchased an annuity from an insurance company that promised to pay her $20,000 per year for

Question:

Anne purchased an from an insurance company that promised to pay her $20,000 per year for the next ten years. Anne paid $145,000 for the and in exchange she will receive $200,000 over the term of the
a. How much of the first $20,000 payment should Anne include in gross income?
b. How much income will Anne recognize over the term of the Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...