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Sixteen years ago, Ms. U purchased a $400,000 insurance policy on her own life and named her son as sole beneficiary. She has paid a

  1. Sixteen years ago, Ms. U purchased a $400,000 insurance policy on her own life and named her son as sole beneficiary. She has paid a total of $21,900 in monthly premiums to keep this policy in force. This year, she liquidates the policy for its $27,200 cash surrender value. Does she recognize any income on the liquidation?

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