Linda Smith paid $25,000 in premiums on a 20-year endowment policy on her life. The policy has a face value of $40,000. At age 60, Linda decides to collect the face value of the policy. In the year of collection, how much will Linda include in her taxable income?
A) $0
B) $15,000
C) $25,000
D) $40,000
Correct Answer:
Verified
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