On June $23,20$x$0,$ taxpayer Charles James, age $72,$ purchased an annuity for $$52,000.$ The annuity terms provide for payment of $$280\mathrm{.}00$ per month, beginning on July $1,20$x$0.$ Payments are to be made to Charles for his life and then to his wife, Megan, for her life in the event that Charles dies first. Assume that Megan was age $69$ on the date of the annuity purchase. Both Charles and Megan remain alive as of December $31,20$x$4.$ What income amount will Charles and Megan report on their joint $20$x$4$ Form $1040?($round it to the nearest $$10$ at the end of the answer only$)$

A$.$ $ $3,360$

B$.$ $$800$

C$.$ $$0$

D$.$ $$2,560$

E$.$ None of the above