Phyllis paid $$25,000$ for her universal life insurance policy and is planning to surrender it$.$

What amount of cash would she receive if she surrendered her policy when it has a cash value

of $$28,000,$ an outstanding loan of $$12,000,$ and an applicable surrender charge of $$3,000?$

a$.$ $$13,000$

b$.$ $$16,000$

c$.$ $$25,000$

d$.$ $$28,000$

Jaycee paid total net premiums of $$15,000$ for her life insurance policy. When she

surrendered her policy, its cash surrender value was $$19,000.$ What amount, if any, must she

include in her income for tax purposes?

a$.$ $$0$

b$.$ $$4,000$

c$.$ $$15,000$

d$.$ $$19,000$