Question: On July 1, 2000, when Betty was 65 years old, she purchased an annuity contract for $108,000. The annuity was to pay Betty $9,000 on

On July 1, 2000, when Betty was 65 years old, she purchased an annuity contract for $108,000. The annuity was to pay Betty $9,000 on June 30 each year for the remainder of her life. Betty died on August 31, 2013. What are the effects of the annuity on Betty's gross income and taxable income for 2013?

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