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Audrey's universal life insurance policy is a modified endowment contract. She paid $ 2 0 , 0 0 0 in net premiums for the policy,

Audrey's universal life insurance policy is a modified endowment contract. She paid $20,000 in net premiums for the policy, which has a cash value of $25,000. Assuming she never previously took a distribution from the policy, how much would she be required to include in her income if she took a policy loan of $7,000?

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