Concept:
The sum of all coefficients in the algebraic expansion of a polynomial $P(x)$ can be found simply by substituting $x = 1$ into the unexpanded expression. This collapses all variable terms, leaving only the arithmetic sum of the coefficients.
Step 1: Identify the polynomial expression.
The given polynomial to be expanded is:
$$P(x) = (1 + 2x - x^2)^{20}$$
Step 2: Apply the rule for finding the sum of coefficients.
To find the sum of the coefficients, we set the variable $x$ to $1$:
$$\text{Sum} = P(1)$$
Step 3: Substitute x = 1 into the expression.
Replace every instance of $x$ inside the parentheses with $1$:
$$\text{Sum} = (1 + 2(1) - (1)^2)^{20}$$
Step 4: Simplify the expression inside the base.
Perform the basic arithmetic inside the parentheses:
$$\text{Sum} = (1 + 2 - 1)^{20}$$
$$\text{Sum} = (3 - 1)^{20}$$
$$\text{Sum} = (2)^{20}$$
Step 5: State the final answer.
The fully evaluated expression gives the sum of all coefficients across the 41 terms of the expansion.
$$\text{Sum} = 2^{20}$$
Hence the correct answer is (A) $2^{20$}.