Classify Each of the Following Statements

question 124

Multiple Choice

Classify each of the following statements:
-Under a prenuptial agreement, Herbert transfers stock to Norma. One month later, Herbert and Norma are married.

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

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Definitions:

Foreign Currencies

The currencies of other countries, used for conducting international transactions or as an investment.

Bonds

Fixed-income investments representing loans made by an investor to a borrower, typically corporate or governmental, which include terms for fixed interest payments and the eventual return of principal.

Gold Reserves

The quantity of gold held by a national central bank or government intended to serve as a store of value and as a guarantee to redeem promises to pay depositors, note holders, or trading peers.

International Monetary Fund

An international organization that aims to foster global monetary cooperation, secure financial stability, and facilitate international trade.