Question: 1.. Tim retired during the current year at age 58. He purchased an annuity from American National Life Company for $40,000. The annuity pays Tim

1.. Tim retired during the current year at age 58. He purchased an annuity from American National Life Company for $40,000. The annuity pays Tim $500 per month for life.

a.Compute Tim's annual exclusion.

b.How much income will Tim report each year after reaching age 84?

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