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 medical expenses. Albert made a miraculous recovery and lived another 20 years. As a result of cashing in the policy: Oa. Albert must recognize 865.000 (580,000 - $15,000) of gross income. Ob. Albert must recognize 540,000 (S80.000 - $25,000 - $15.000) of gross income. Oc. Albert must recognize $55.000 of gross income, but he has $15.000 of deductible medical expenses. Od. Albert is not required to recognize any gross income because of his terminal illness