Gil Jerome Retired from Health Nuts, Inc

Gil Jerome retired from Health Nuts, Inc. and will receive $1,100 a month for the rest of his life from its noncontributory pension plan. fte following statements regarding Gil's retirement annuity are all true, except:

A) fte adjusted basis in the annuity was, is, and will always be zero, even to a surviving spouse beneficiary.
B) Gil will use the exclusion ratio to determine his gross income from the annuity.
C) Gil's gross income from the annuity is $13,200 a year, regardless how long he lives.
D) Gil's tax consequences are independent of whether the pension plan is qualified or not.