Question: Noah owns a $ 5 0 0 , 0 0 0 participating life insurance policy for which he pays $ 7 , 0 0 0

Noah owns a $500,000 participating life insurance policy for which he pays $7,000 a year in premium. To date, the total premium he's paid into the policy equals $70,000 and the policy's cash value is $57,000. Noah takes the policy's dividends as cash payments. How much of each dividend payment is taxable to Noah?

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