QUESTIONS Alice has a life insurance policy with a cash surrender value of $200,000 on which she has paid $30,000 in premiums. She has decided to cash in the policy. Discuss the tax consequences if Alice is terminally ill and decides to use the proceeds to take a cruise around the world. a. She must include all of the gain ($170,000) in gross income b. She must include all $200,000 received in gross income Oc She can exclude all of the gain in the policy (S200,000 less $30,000 of premiums paid) from gross income d. She must include $30,000 in gross income QUESTION 4 Alis single, age 60, and has gross income of $140,000 in 2018. His deductible expenses in 2018 are as follows: Alimony $20,000 Charitable contributions 4,000 Contribution to a traditional IRA 5,500 Interest on home mortgage and property taxes on personal residence 7,200 State income tax 2,200 What is Al's AGI