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Josh pays $120,000 for a single-life annuity that pays him $11,000 a year for life....

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Accounting

Josh pays $120,000 for a single-life annuity that pays him $11,000 a year for life. Treasury Department tables estimate his expected remaining life at 15 years.

a. How much of each $11,000 payment must Charles report as gross income?

b. If Charles dies after receiving annuity payments totaling $77,000 over seven years, what happens to the unrecovered cost?

Please show all work. Will rate!

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