Britney is beneficiary of an $150,000 insurance policy on her father's life. Upon his death, she may elect to receive the proceeds in five yearly...

Britney is beneficiary of an $150,000 insurance policy on her father's life. Upon his death, she may elect to receive the proceeds in five yearly installments of $32,000 or may take the $150 lump sum. She elects to take the lump sum payment. What are the tax consequences in year one? A) All $32,000 each year is taxable.B) $10,000 interest is taxable in the first year.c) There is no taxable incomeD) The lump sum payment is taxable.