Dan Transfers an Apartment Building to Grace but Retains the Right

question 4

Multiple Choice

Dan transfers an apartment building to Grace but retains the right to the rental income for 10 years. Dan dies nine years after the transfer when the building is worth $600,000. The applicable federal rate is 10% and the reversionary actuarial factor is 0.30. How much would be included in Dan's estate?

• A)$0
• B)$150,000
• C)$350,000
• D)$600,000

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Definitions:

Regular Event

An occurrence that happens at consistent intervals or in a predictable pattern.

Paralanguage

The aspect of spoken communication that is not formed by words themselves but is conveyed through tone of voice, loudness, pitch, and other vocal cues.

Tonal

Pertaining to the character or quality of sound, especially in music, where it refers to the organization of pitches and harmonies.

Whistled Speech

An exchange of whistled words using a phonetic emulation of the sounds produced in spoken voice.