Alana paid $65,000 in premiums on an endowment life insurance policy with a face value of $100,000. Upon reaching 65, Alana collected the face value of the policy. In the year of collection, Alana will report
A) no income.
B) $35,000 of taxable income.
C) $65,000 of taxable income.
D) $100,000 of taxable income.
Answer: B