phyllis surrenders her annuity while its in the accumulation phase. she paid $8000 into the contract, and it has a value of 11,000. how will the 3000 gain be taxed?

a. no tax is due on the gain

b. as ordinary income in the year surrendered

c. as ordinary income, spread out over the years until 65

d. 1500 as ordinary income 1500 as capital gain