A parent with adequate personal insurance coverage and sound retirement planning already in operation would like to make an exchange of his daughter's $$25,000$ whole life policy that has been maintained for $15$ years. This individual wants to retain ownership of some coverage on his daughter's life. The parent has a moderate investment risk profile. This individual wants to double the policy's death benefit right away and can certainly afford the associated increase in premium. This individual also wants to invest in an account that has the potential to achieve financial returns above those that are now being offered for fixed$-$interest accounts. Taking advantage of the benefits of Section $1035,$ you recommend he considers

A$)$ a graded premium whole life policy

B$)$ a universal life policy with an Option A death benefit

C$)$ a variable universal life policy with a guaranteed death benefit rider

D$)$ a $30-$year term policy

Under the terms of IRC Section $1035,$ in which of these exchanges would any gains be recognized?

A$)$ one life insurance contract for another

B$)$ a life insurance contract for an annuity contract

C$)$ an annuity contract for a life insurance contract

D$)$ one annuity contract for another