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Payments were based on 25 years if barbara dies in 2014

Question - In 1991, Barbara purchased a single life annuity for $250,000 that would pay her $25,000 per year for life beginning in 2002. Barbara's life expectancy is 25 years from 2002 forward. Payments were based on 25 years.

a. How much would Barbara include in income if she were still receiving payments in 2020?

b. If Barbara dies in 2014 after receiving that year's payment, what is the investment portion remaining? How is the unrecovered investment treated for tax purposes?

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