The following information pertains to an insurance policy that Barton owns on his life:

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Face amount

$100,000

Accumulated premiums paid up to December 31, 2007

8,000

Cash value at December 31, 2007

12,000

Policy loan

3,000

In Barton’s personal statement of financial condition at December 31, 2007, what amount should be reported for the investment in life insurance?

  1. $97,000
  2. $12,000
  3. $ 9,000
  4. $ 8,000