Classify Each of the Following Independent Statements

question 99

Multiple Choice

Classify each of the following independent statements:.
-Cash dividends on stock owned by the decedent (declaration and record dates preceded death but payment date was after death) .

• A)Some or all of the asset is included in the decedent’s gross estate.
• B)None of the asset is included in the decedent’s gross estate.

---

Definitions:

Preferred Stock

A class of ownership in a corporation with a fixed dividend, senior to common stock but junior to bonds in claim on assets and earnings.

Commercial Paper

Short-term unsecured promissory notes issued by companies to finance their short-term liabilities.

Bank Discount Yield

A measure of the annualized yield on a short-term, non-interest bearing security like a Treasury bill, calculated using the discount from face value and the time to maturity.

Securitization

The financial process of pooling various types of contractual debt, such as mortgages or loans, and selling them as consolidated financial instruments to investors.