Exercise 5-23 (Algorithmic) (LO. 2) Alfred owned a term life insurance policy at the time he was diagnosed as having a terminal illness. After paying $80,750 in premiums, he sold the policy to a company that is authorized by the state of South Carolina to purchase such policies. The company paid Alfred $565,250. When Alfred died 18 months later, the company collected the face amount of the policy, $678,300. As a result of the sale of the policy, how much is Alfred required to include in his gross income? $0 $80,750 $484,500 $565,250 $678,300