Classify Each of the Following Statements

question 137

Multiple Choice

Classify each of the following statements.
-Homer purchases a U.S. savings bond listing title as: "Homer, payable to Bernice upon Homer's death." Bernice is Homer's sister.

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

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Definitions:

Instrumental Value

The importance or worth of something based on its utility in achieving an end or serving as a means to facilitate a goal.

Rationality Strategy

An approach that emphasizes logical, systematic decision-making and problem-solving.

Gift Certificate

A pre-paid voucher that can be used as payment for goods or services at a specific retailer or establishment.

Denial of Injury

A defense mechanism or rationalization where an individual justifies harmful actions by claiming no one was hurt or the harm was insignificant.