QUESTION 33 Victoria cashes in her life insurance policy and receives the cash surrender value of $250,000. She had paid $130,000 in premiums. What are the tax consequences to Victoria? a. She must include all $250,000 in gross income b. She has income of $130,000 in the current year O She recognizes no income from the transaction d. She recognizes $120,000 gain in the current year QUESTION 34 Silver Corporation, which operates a department store, sells a television to a store employee for $300. The regular customer price is 5500, and the gross profit rate is 25%. The corporation also sells the employee a service contract for $120. The regular customer price for the contract is $150. How much must the employee include in income from both these transactions in total? O 530 b. $123 OC 50 d. 575