Partha owns a qualified annuity that cost $52,000. Under the contract, when he reaches age 65, he

Question:

Partha owns a qualified annuity that cost $52,000. Under the contract, when he reaches age 65, he will receive $500 per month until he dies. Partha turns 65 on June 1, 2011, and receives his first payment on June 3, 2011. How much gross income will Partha report from the annuity payments in 2011?

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,...