(20") MCQ-04457 This question is based on the following data: Sydney Corporation Income Statement For the year ended December 31, Year 5 Sales $1,800,000 Cost of sales (1,200,000) Gross margin 600,000 Operating expenses (500,000) Operating income 100,000 Other income: Gain on sale of investments $30,000 Life insurance policy proceeds 20,000 Dividends 6,000 Total 56,000 Other expense: Contributions (18,000) Income before income tax $ 138,000 The life insurance policy proceeds represent a lump-sum payment in full as a result of the untimely death of Sydney's chief financial officer. Sydney was the owner and sole beneficiary of the policy; however, on receipt of the insurance proceeds, Sydney distributed the entire amount to the CFO's surviving spouse. On its Year 5 income tax return, Sydney should report taxable life insurance proceeds of: $0 o $10,000 0 $16,000 O $20,000