Answer:
$90
Explanation:
Given
life annuity cost = $6000
life expectancy = 100 months
monthly payments = $150
First calculate the annuity exclusion ratio is by dividing life annuity cost with life expectancy
$6,000/100 = $60 return of capital per payment.
Therefore,
To calculate how much of the first $150 payment is included in gross income,
= first monthly payment - return of capital per payment.
= $150 - $60
= $90
