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Required information Question 2 [The following information applies to the questions displayed...

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Question

Accounting

Required information
Question 2
[The following information applies to the questions displayed below.]
Patrick Mahomes, who is 72 years old, purchased an annuity that promises to pay him $6,000 per month for the rest of his life. Patrick paid $630,720 for the annuity. Patrick received the first annuity payment of $6,000 this month. Use the expected number of payments in Exhibit 5-1 for this problem.
Question 2a
a. How much of the first payment should Patrick include in gross income?
Amount to be included in gross income
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