Classify Each of the Following Statements

question 17

Multiple Choice

Classify each of the following statements.
-Maggie purchased an insurance policy on Jim's life and designated Susan as the beneficiary. Four years later, Jim dies, and Susan collects the insurance proceeds.

• A)No taxable transfer occurs.
• B)Gift tax applies.
• C)Estate tax applies.

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Definitions:

Functional Attributes

Characteristics of a product or service that serve a practical purpose or provide utility to the consumer.

Symbolic Attributes

Qualities or features of an object or entity that represent or stand for something else, carrying additional meaning beyond their inherent traits.

Gestalt

A psychological theory that emphasizes the human mind and behavior as being organized into wholes, where the perceived whole is different from and often more than the sum of its parts.

Stimuli

External events or occurrences that can elicit responses from sensory organs, leading to various forms of responses in an organism.