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:

Modus Ponens

A logical argument form and a rule of inference that, if a premise implies a conclusion and the premise is true, then the conclusion must also be true.

Modus Tollens

A logical argument form that suggests if a implies b, and b is found to be false, then a must also be false.

Antecedent

An event, condition, or cause that logically or temporally precedes another; in grammar, the noun or noun phrase that a pronoun refers to.