Problem 4-51 (Algorithmic) (LO. 4) Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $31,500 to her employer's qualified pension fund, all of which was taxable when earned. She elects to receive her retirement benefits as an annuity of $3,150 per month for the remainder of her life. Click here to access Exhibit 4.1 and Exhibit 4.2. a. Assume that Pam retired in June 2019 and collected six annuity payments that year. What is her gross income from the annuity payments in the first year? 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. No income is recognized by the annuitant at the time the cash value of the annuity increases because the taxpayer has not actually received any income. The tax accounting problem associated with receiving payments under an annuity contract is one of apportioning the amounts received between recovery of capital and income. b. Assume that Pam lives 25 years after retiring. What is her gross income from the annuity payments in the twenty-fourth year? 0 X Feedback Check My Work Incorrect C. Assume that Pam dies after collecting 160 payments. She collected eight payments in the year of her death. What are Pam's gross income and deductions from the annuity contract in the year of her death? Income from the annuity payments: $ 0 X Loss deduction: S dl X