George purchased a life annuity for $3,200 that will provide him $80 monthly payments for as long as he lives. based on irs tables, george's life expectancy is 100 months. how much of the first $80 payment will george include in his gross income?

$48

Explanation:

Data provided in the question:

Life annuity = $3,200

Monthly payments = $80

George's Life expectancy = 100 months

Now,

The annuity exclusion ratio =

or

The annuity exclusion ratio =

or

The annuity exclusion ratio = $32

Therefore,

Return on capital per payment = $32

Hence,

The amount of the first $80 payment will George include in his gross income = $80 - $32

= $48

a) both were commissioned explorers