Bob paid $10,000 in net premium for universal life insurance policy and took withdrawal of $4,000 when policy cash value was $11,000. Assuming Bob never previously taken a cash value withdrawal and the policy is not a modified endowment contract, what amount is taxable to Bob?

A.$0

B$1,000

C.$4,000

D.$3,000

Answer rating: 100% (QA)

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