Charles bought an annuity for $30,000 several years ago. The annuity will pay him $250 per month from age 62 until he dies. During the current year, Charles turns 62 and receives his first annuity payment. I. If Charles dies after receiving 192 monthly payments, he must amend prior returns and correct the income reported based on 192 monthly payments. If Charles receives more than 260 payments, the total of each payment received after the II. 260th payment is included from income.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.

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The Answer of Charles bought an annuity for $30,000 several years ago. The annuity will pay him $250 per month from age 62 until he dies. During the current year, Charles turns 62 and receives his first annuity payment. I. If Charles dies after receiving 192 monthly payments, he must amend prior returns and correct the income reported based on 192 monthly payments. If Charles receives more than 260 payments, the total of each payment received after the II. 260th payment is included from income.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.

Charles Bought an Annuity for $30,000 Several Years Ago