Oa) Jason, age 52. is policyholder of an exempt universal life (UL) insurance policy with a face value of $220,000, a cash Surrender value (CSV) of $60,000, and an adjusted cost basis (ACB) of $20,000. The life insured on the policy is Jason's son, Hudson, age 21. Which of the following CORRECTLY describes the outcome if Jason transfers ownership of the policy to Hudson for no consideration (i.e. if Hudson does not pay Jason for acquiring the policy)? Jason incurs a taxable policy gain of $40,000 and Hudson acquires the policy with an ACB of $20,000. Jason incurs a taxable policy gain of $40,000 and Hudson acquires the policy with an ACB of $60,000. Jason does not incur a taxable policy gain and Hudson acquires the policy with an ACB of $20,000. Jason does not incur a taxable policy gain and Hudson acquires the policy with an ACB of $60,000 Od) Next View Summary Close