Question: Gina, your 5 4 - year - old client, has a modified endowment contract ( MEC ) with a basis of $ 2 5 ,

Gina, your 54-year-old client, has a modified endowment contract (MEC) with a basis of $25,000 and a cash value of $50,000. Gina needs to withdraw $10,000 from the MEC to pay the balances of her credit cards. Which of these is a tax consequence of Gina's withdrawal?

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