Question - Don Smith's wife died in January while still employed and, as her beneficiary, he began receiving an annuity of $147 per month. There was no investment in the contract after June 30, 2013. The investment in the contract was $7,938. Don Smith, age 65, received his first monthly annuity check as of February 3, 2018. Determine the amount of his pension to be included in his gross income.