Ned Norton, a calendar year taxpayer, purchased an annuity contract which pays him $54 per month beginning June 1, 2012. This annuity cost him $2,400, and it has an expected return of $7,200. How much of this annuity is includible in gross income for the 2012 calendar year?

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The Answer of Ned Norton, a calendar year taxpayer, purchased an annuity contract which pays him $54 per month beginning June 1, 2012. This annuity cost him $2,400, and it has an expected return of $7,200. How much of this annuity is includible in gross income for the 2012 calendar year?

Ned Norton, a Calendar Year Taxpayer, Purchased an Annuity Contract