Answer:
The amount included in his gross income is $30
Explanation:
The computation of the amount included in his gross income is shown below:
The Amount to be involved in gross income is
= First amount - (purchase value of a life annuity ÷ expectancy life)
= $50 - ($2,000 ÷ 100)
= $50 - $20
= $30
Hence, the amount included in his gross income is $30
We simply applied the above formula so that the correct amount could come
