B, who is single and 59 years old, purchased a single premium immediate annuity on January 1 of the current year for $12,000 that will pay him $100 every month for life beginning on January 15.Based on actuarial tables published by the IRS, his life expectancy multiple is 25.0.Assuming B lives just 20 years, the unrecovered amount allowed as a deduction on B's final tax return is

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The entire purchase price of the annuity ($12,000) would be recovered through the monthly payments over the 20 years, eliminating any unrecovered amount for deduction on B's final tax return.

B, Who Is Single and 59 Years Old, Purchased a Single