Peter purchased a nonqualified deferrd annuity with a qualified long term casre insurance rider for $10,000. He surrendered the contract 10 years later and receivd it $150,000 cash surrender value. What amunt must he include in income if he took no withdrawls during the period of ownership, and charges of $20,000 against the cash value were made to pay the long term care rider permiums.
1. $50,000
2. $70,000
3. $30,000
4. $0