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Problem $5-52($LO $5-2)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Larry purchased an annuity from an insurance company that promises to pay him $$8,000$ per month for the rest of his life.

Larry paid $$1,051,200$ for the annuity. Larry is in good health and is $72$ years old. Larry received the first annuity payment of

$$8,000$ this month. Use the expected number of payments in Exhibit $5-1$ for this problem.

Problem $5-52$ Part c $($Algo$)$

c$.$ What are the tax consequences if Larry dies just after he receives the $100$ th payment?

Amount to be deducted

Amount to be included