Exercise 4-25 (Algorithmic) (LO.4) A taxpayer, age 64, purchases an annuity from an insurance company for $86,000. She is to receive $717 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $8,600 this year, what is the exclusion percentage, and how much is included in her gross income? Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar. Exclusion percentage: 48.054 X % Included in income: 4,467 x Feedback Check My Work Annuity contracts generally require the purchaser (the annuitant) to pay a fixed amount for the right to receive a future stream of payments. Typically, the issuer of the contract is an insurance company and will pay the annuitant a cash value if the annuitant cancels the contract