Sharon transfers to Russ a life insurance policy with a cash surrender value of $39,200 and a face value of $117,600 in exchange for real estate. Russ continues to pay the premiums on the policy until Sharon dies 7 years later. At that time, Russ has paid $17,640 in premiums, and he collects the $117,600 face value. How much of the proceeds, if any, is taxable to Russ? Why? Since the policy was transferred for valuable consideration the pres