Carol had a universal life insurance policy with a death benefit of $100,000. The policy had a cash value of $18,000. They noticed that she had marked death benefit option B and made Michael the sole beneficiary. Michael has decided he wants to take the cash option and invest his inheritance in a lakefront property that he feels will grow in value over the next several years. How much money is Michael going to receive from the insurance company, and what are the tax consequences of this transaction?

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