Question: John purchased a Variable Annuity for $36,000 and has decided to annuitize the contract. IRS tables indicate his life expectancy is 25 years,at the time

John purchased a Variable Annuity for $36,000 and has decided to annuitize the contract. IRS tables indicate his life expectancy is 25 years,at the time payments are to start. During the current year he received monthly payments of $350, how much of each payment is subject to Taxation?

a. $350
b. $0
c. $230
d. $120

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