George, age 60, owns a $100,000 whole life insurance policy which he purchased 20 years ago. He has paid premiums of $2,000 per year for the past 20 years and has been paid dividends of $8,000. The current cash value of the policy is $60,000 and the surrender value is $55,000. If George cancels the policy what is the tax result of the transaction?

A.Because George is over age 59.5 there is no tax on cancellation.

B.George will have $15,000 of ordinary income.

C.George will have $20,000 of ordinary income.

D.George will have $23,000 of ordinary income.