Bart's Spouse, Carla, Dies During the Current Year

question 132

Multiple Choice

Bart's spouse, Carla, dies during the current year. Carla's life insurance policy names Bart the sole beneficiary of the $2 million proceeds. Bart invests the $2 million in a bank certificate of deposit (CD) . For the current year, Bart earns $98,000 interest from the CD. What are the tax effects of these events for Bart?
I.The $98,000 is included in gross income.
II.The $2 million is included in gross income.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

Identify the adaptation of Native American tribes to European-American culture in the early 1800s.

Explore the role of the Sedition Act in American debates over liberty and freedom, including responses like the Virginia and Kentucky resolutions.

Examine the involvement of ordinary citizens in political affairs and the evolution of American concepts of liberty and freedom from 1790 to 1815.

Understand the ideological and territorial expansion during the late 18th century in America.

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Definitions:

Government Purchases

Expenditures by government entities for goods and services that are directly consumed or used in providing public services.

Resources

The total means available for economic and political development, such as mineral wealth, labor force, and armaments.

Government Purchases

Expenditures by government bodies on goods and services that directly absorb resources or satisfy human wants.

Tax Freedom Day

Tax Freedom Day represents the day of the year by which a nation’s citizens have collectively earned enough income to pay their total tax bill for the year, symbolizing the tax burden on taxpayers.