56. LO 4,5 Fran, who is in the 35% tax bracket, recently collected $100,000 on a life insur- ance policy she carried on her father. She currently owes $120,000 on her per- sonal residence and $120,000 on business properny. National Bank holds the mortgage on both pieces of propernty and has agreed to accept S100000 in complete satisfaction of either mortgage. The interest rate on the mortgages is 8%, and both mortgages are payable over 10 years. What would be the tax consequences of each of the following ltematives assuming that Fran cumently deducts the mantgage interest on her tax netum? a. Retire the mortgage on the residence b. Retire the mortgage on the business property Which alternative should Fran select