David has been diagnosed with cancer and is expected to live less than 18 months. David is covered by a life insurance policy with a $400,000 face amount. David cashes in the policy early under a special option and receives 80% of the face amount or $320,000. In the year ofcollection, David will report

A.$80,000.

B.no income.

C.$400,000.

D.$320,000.