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Ratan had a whole life insurance policy with a $ 7 5 , 0 0 0 death benefit. He paid premiums into the policy of

Ratan had a whole life insurance policy with a $75,000 death benefit. He paid premiums into the policy of $880 per year for 25 years. Now that he is older and doesn't need insurance protection for his family, he wants to surrender the policy. The life insurance company offered him $30,000 to surrender the policy and he agreed. What will be taxation of this transaction?

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