Sixteen years ago, Ms. Cole purchased a $556,000 insurance policy on her own life and named her son as sole beneficiary. She has paid $34,472 total premiums to keep this policy in force. a. This year, she liquidates the policy for its $42.812 cash surrender value. Does she recognize income on the liquidation? b. Now assume that Ms. Cole is terminally ill. The insurance policy provides that a person with a life expectancy of less than one year can liquidate the policy and receive 80 percent of the death benefit. She does so and receives a $444,800 accelerated death benefit. Does she recognize income on the liquidation? Complete this question by entering your answers in the tabs below. Required A Required B This year, she liquidates the policy for its $42,812 cash surrender value. Does she recognize income on the liquidation? Does she recognize income on the liquidation? Recognized Income Required B ) Sixteen years ago, Ms. Cole purchased a $556,000 insurance policy paid $34,472 total premiums to keep this policy in force. a. This year, she liquidates the policy for its $42,812 cash surrender v b. Now assume that Ms. Cole is terminally ill. The insurance policy pro can liquidate the policy and receive 80 percent of the death benefi benefit. Does she recognize income on the liquidation? Complete this question by entering your answers in the tabs bel Required A Required B Now assume that Ms. Cole is terminally ill. The insurance policy provides year can liquidate the policy and receive 80 percent of the death benefit. death benefit. Does she recognize income on the liquidation? Does she recognize income on the liquidation? Recognized Income