Twenty years ago. Pete purchased a $1,000,000 whole life insurance policy on his life. His daughter Lynn was the beneficiary. As of January 1, 2020 the cash surrender value of the policy was $450,000. The total amount of Insurance premiums paid by Pete over the life of the policy was $200,000. On January 1, 2020 Pete died and the insurance company paid the death benefits of $1,000,000 to Lynn. What amount of income must Lynn report in her 2020 tax return with respect to this insurance policy? Multiple Choice S1000.000 0 $250.000 0 0 $800.000 0