Sixteen years ago, Ms. Cole purchased a $500,000 insurance policy on her own life and named her son as sole beneficiary. She has paid $31,280 total premiums to keep this policy in force. Required: a. This year, she liquidates the policy for its $38,500 cash surrender value. Does she recognize income on the liquidation? Required A Required B This year, she liquidates the policy for its $38,500 cash surrender value. Does she recognize income on the liquidation? \begin{tabular}{|l|l|} \hline Does she recognize income on the liquidation? & Yes \\ \hline Recognized Income & \\ \hline \end{tabular}