Philip Southerly purchases a joint and survivor annuity providing for payments of $200 per month for his life and, after his death, $100 per month for his wife's life. As of the annuity starting date he is 70 years old and his wife is 67. The annuity cost Philip $28,000. Determine the exclusion ratio for the annuity Philip purchased and the amount of the pension to be included in gross income.