C was recently diagnosed with a rare liver disorder and has been certified by

his medical doctor, on June 1 of the current year, as terminally ill. C immediately resigned from his sales position with IBM and, on July 1 of the current year, sold his life insurance policy with a face value of $300,000 to a viatical

"settlement provider" (VSP) for $240,000.If C dies 10 months later, how much must

VSP include in its gross income assuming it paid additional premiums of

$12,000 after purchasing the policy?

$0

$48,000

$300,000

$60,000