Classify Each Statement Appearing Below

question 70

Short Answer

Classify each statement appearing below.
a.No taxable transfer occurs
b.Gift tax applies
c.Estate tax applies
-Hugh loans his adult daughter,Nadia,$800,000 to start her own business.Market rate interest is provided for,and Nadia signs a note that is payable in four years.Hugh dies two years later and,in his will,cancels the note.Nadia's business proved to be successful.

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Definitions:

Gustatory Receptors

Sensory receptors located on the tongue that detect taste.

Olfactory Receptors

Specialized nerve cells located in the nasal cavity that are responsible for detecting odors and sending information to the brain for processing.

Chemoreceptors

Sensory receptor cells that respond to chemical stimuli, involved in senses like taste and smell and the regulation of breathing.

Cutaneous Receptor

Sensory receptors found in the skin that respond to various stimuli such as touch, pressure, temperature, and pain.