Four Years Ago, Roper Transferred to His Son Ownership of a $100,000

question 16

Multiple Choice

Four years ago, Roper transferred to his son ownership of a $100,000 life insurance policy that Roper purchased on his own life in 2000. The cash value of the policy on the transfer date was $25,000. Roper died on March 1st of this year. The amount included in Roper's gross estate due to the life insurance policy is

• A)$0.
• B)$25,000.
• C)$35,000.
• D)$100,000.

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Definitions:

Assigned

In derivatives trading, it refers to the notification that an option holder has decided to exercise their option.

Financial Executives

Individuals who manage financial planning, decision making, and control in an organization.

Accounting Values

The monetary amounts associated with assets, liabilities, equity, income, and expenses recorded in a company's financial statements.

Financial Values

Refers to the monetary, material, or assessed worth of an asset, investment, or company.