In 2001, Alejandro Buys an Annuity for $100,000 That Will

question 26

Multiple Choice

In 2001, Alejandro buys an annuity for $100,000 that will pay Alejandro an annual amount for life with survivor benefits to his wife. When Alejandro dies in the current year, a comparable contract would have cost $81,000. What amount is included in Alejandro's gross estate?

• A) $181,000
• B) $81,000
• C) $0
• D) $100,000