Shane owns a life insurance policy which is a modified endowment contract. He recently reassessed his

insurance needs and decided that he would like to exchange his current policy for a different insurance

product. Which of the following transactions might result in gain realization and recognition?

a$.$ If Shane trades his modified endowment contract for a permanent life insurance policy.

b$.$ If Shane trades his modified endowment contract for a different modified endowment

contract.

c$.$ If Shane trades his modified endowment contract for an annuity.

d$.$ None of the above transactions would result in the realization and recognition of gain.