3. When Loretta was dying, in a viatical settlement, she sold her life insurance policy (face amount $200,000) for $120,000 to Daniel. After the purchase, and before Loretta died, Daniel paid premiums of $3,000 to keep the policy in force. How much, if any, of the $200,000 proceeds paid to Daniel are taxable income? a. $0 b. $77,000 c. $200,000 d. some other value

3. When Loretta was dying, in a viatical settlement, she sold her life insurance policy (face amount $200,000 ) for $120,000 to Daniel. After the purchase, and before Loretta died, Daniel paid premiums of $3,000 to keep the policylin force. How much, if any, of the $200,000 proceeds paid to Daniel are taxable income? a. $0 b. $77,000 c. $200,000 d. some other value