This Year Larry Received the First Payment from an Annuity

question 133

Essay

This year Larry received the first payment from an annuity that promises to pay him $3,000 per month for the rest of his life. The IRS tables indicate that given Larry's age, he should expect to receive 310 monthly payments. The cost of the annuity to Larry was $620,000. How much of the first $3,000 payment should Larry include in gross income?

---

Definitions:

Brand Equity Pyramid

A model describing the value of a brand based on consumer attitudes, associations, perceptions, and loyalty.

Breast Cancer

A type of cancer that originates in the cells of the breasts, potentially leading to life-threatening tumors if not treated.

Family History

The genetic, health, and social history of an individual's family, which can influence personal health risks and conditions.