William purchased a universal life policy on his own life. When his son Ben turned 25, William changed the life insured to Ben's life, and transferred ownership of the policy to Ben. The policy has a cash surrender value of $50,000 and an adjusted cost basis of $22,000. Ben took a policy loan of $10,000 for each of the next five years to travel around the world. He surrendered the policy after five years. Which of the following statements is true?

a) William would have $28,000 of taxable income as a result of the transfer.

b) Ben would have $10,000 of taxable income for each of the five years.

c)Ben would have about $5,600 of taxable income for each of the five years.

d) William would have $22,000 of taxable income as a result of the transfer.