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With respect to cash value life policies, what part of the policy value, if any, is subject to income taxation when the policy is surrendered?

With respect to cash value life policies, what part of the policy value, if any, is subject to income taxation when the policy is surrendered? 


A) the entire face amount less any dividends received 


B) none of the policy value


C) the amount of the surrender value that exceeds basis


D) the entire face amount

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