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Sarah has a $ 1 million permanent life insurance policy with a cash value of $ 2 0 0 , 0 0 0 . She

Sarah has a $1 million permanent life insurance policy with a cash value of $200,000. She paid $150,000 in total premiums and has an outstanding loan of $175,000 including interest. If Sarahs policy lapses, what amount will be subject to taxes?

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