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Jerry purchased an annuity contract at the beginning of 2002 for $144,000. The contract specified that he and his wife would receive $1,000 per month for life. Jerry receives his first payment on February 1, 2012 when he is 59 years old and his wife is 56 years old. What amount of gross income should Jerry and his wife report on their 2012 income tax return from this annuity contract?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92711792

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