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Mr. Jones owns a single premium life policy that fails the seven pay test. The single premium amount was $100,000, and the policy has a

Mr. Jones owns a single premium life policy that fails the seven pay test. The single premium amount was $100,000, and the policy has a cash value of $110,000. If Mr. Jones takes a policy loan of $15,000, how much of the loan will be taxed?

a. $0

b. $10,000

c. $15,000

d. $110,000

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