Question: ack purchased a $ 2 0 0 , 0 0 0 whole life insurance policy and designated his wife, Judy, as the beneficiary. Several years

ack purchased a $200,000 whole life insurance policy and designated his wife, Judy, as the beneficiary. Several years later, Jack surrendered the policy for the lump-sum cash value of $100,000. Jack had paid gross premiums of $90,000 and had received dividends of $20,000. What are the tax consequences to Jack upon receipt of the cash surrender proceeds from the policy?

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