Under the Revised Uniform Principal and Income Act,gains or Losses

question 23

Multiple Choice

Under the Revised Uniform Principal and Income Act,gains or losses incurred on investments that occur after the death of the decedent

• A)are considered to be income of the estate.
• B)are included in the inventory fair value at the time of death.
• C)are taxed separately from other estate income.
• D)are adjustments to the principal of the estate.

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Definitions:

Put

It refers to an options contract giving the holder the right but not the obligation to sell a specified amount of an underlying security at a predetermined price within a specified time frame.

Underlying Asset

The financial asset that determines the value of a derivative instrument or structured product.

Treasury Bills

Short-term debt securities issued by the government with a maturity of less than one year, used to finance government spending.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specific time frame.