Fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract. This year, he began receiving a $1,300 monthly payment that will continue for his life. On the basis of his age, he can expect to receive $312,000. Assume that on January 1, 2028, Mr. Fairhold's unrecovered investment in the annuity is $1,875. Required: a. How much of his total 2028 annuity payments ($15,600) are taxable? b. Assume that he dies in February after receiving only one $1,300 payment. What are the tax consequences on his final Form 1040 ? Complete this question by entering your answers in the tabs below. How much of his total 2028 annuity payments ($15,600) are taxable
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