Question: Gramps purchased a joint survivor annuity that pays $1,550 monthly over his remaining life and that of his wife, Gram. Gramps is 70 years old

Gramps purchased a joint survivor annuity that pays $1,550 monthly over his remaining life and that of his wife, Gram. Gramps is 70 years old and Gram is 65 years old. Gramps paid $300,762 for the contract. How much income will Gramps recognize on the first payment? (Hint: Review Table VI from Reg. Sec 1.72-9 on the IRS website.) Answer is complete but not entirely correct. Amount to be included in gross income $ 150

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