$28.$ Albert had a terminal illness that would require almost constant nursing care for the remaining two years of his estimated life, according to his doctor. Albert had a life insurance policy with a face amount of $$100,000.$He had paid$$25,000$ of premiums on the policy. The insurance company has offered to pay him $$80,000$ to cancel the policy, although its cash surrender value was only $$55,000.$ He accepted the $$80,000.$ Albert used $$15,000$ to pay his medica expenses. Albert made a miraculous recovery and lived another $20$ years. As a result of cashing in the policy a$.$ Albert must recognize $$55,000$ of gross income, but he has $$15,000$ of deductible medical expenses. b$.$ Albert must recognize $$65,000($$$80,000-$$$15,000)$ of gross income.c$.$ Albert must recognize $$40,000($$$80,000-$$$25,000-$$$15,000)$ of gross income. d$.$ Albert is not required to recognize any gross income because of his terminal illness.