At the Time of His Death, Fred Held Some Notes

question 104

True/False

At the time of his death, Fred held some notes receivable for loans he made to his two daughters, the payment of which he forgives in his will. The amount to be included in Fred's gross estate as to these notes is not affected by his forgiveness.

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Definitions:

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's cost.

Simple Interest

Interest that is determined just on the original amount, or on the remaining unpaid portion of that amount.

Government of Alberta

The provincial government responsible for public policy, regulation, and administration in the province of Alberta, Canada.

Treasury Bill

Short-term government securities issued at a discount from the face value and paying no interest, maturing usually in one year or less.