Over the years Rianna paid $65,000 in premiums on a life insurance policy with a face value of $100,000. Upon reaching 65, while still in good health, Rianna surrendered the policy and collected $95,000. In the year of collection, Rianna will report

A. $95,000 of taxable income.
B. $5,000 of tax loss.
C. no income.
D. $30,000 of taxable income.


Answer: D

Business

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