Sharon transfers to Russ a life insurance policy with a cash surrender value of $35,000 and a

Question:

Sharon transfers to Russ a life insurance policy with a cash surrender value of $35,000 and a of $100,000 in exchange for real estate. Russ continues to pay the premiums on the policy until Sharon dies 7 years later. At that time, Russ has paid $12,000 in premiums, and he collects the $100,000 How much of the proceeds is taxable to Russ?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...