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Anne purchased an annuity from an insurance company that promised to pay her $35,000 per...

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Accounting

Anne purchased an annuity from an insurance company that promised to pay her $35,000 per year for the next ten years. Anne paid $236,250 for the annuity, and in exchange she will receive $350,000 over the term of the annuity.

a. How much of the first $35,000 payment should Anne include in gross income?(Do not round intermediate calculations.) b.How much income will Anne recognize over the term of the annuity?

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