Kevin owns a modified endowment contract. Kevin recently reassessed his insurance needs and decided that he would like to exchange his current modified endowment contract for a different insurance product. Which of the following transactions might result in gain realization?

		If Kevin trades his modified endowment contract for a life insurance policy.
		If Kevin trades his modified endowment contract for a different modified endowment contract.
		If Kevin trades his modified endowment contract for an annuity.
		None of the above transactions would result in the realization of gain. Income Tax