Deepak had a terminal illness that would require almost constant nursing care for the remaining 18 months of his estimated life according to his doctor. Deepak had a life insurance policy with a face amount of $130,000. He had paid $30,000 of premiums on the policy. The insurance company offered to pay him $100,000 to cancel the policy, although its cash surrender value was only $70,000. He accepted the $100,000. Deepak used $25,000 to pay his medical expenses. Deepak made a miraculous recovery and lived another 30 years. As a result of cashing in the policy: a. None of the other choices are correct. b. Deepak must recognize $45,000 ($100,000 - $30,000 - $25,000) of gross income. c. Deepak must recognize $75,000 ($100000 - $25,000) of gross income. d. Deepak must recognize $70,000 of gross income, but he has $25,0000 of deductible medical expenses. e. Deepak is not required to recognize any gross income because of his terminal illness