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

question 150

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 $2 million is excluded from gross income.
II.Bart has no taxable income from these transactions.
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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.

Understand the use and mechanism of Wolff-Kishner reduction in organic chemistry.

Identify functional groups in organic molecules from their structures.

Describe the conversion of carbonyl groups to methylene groups using specific reagents.

Predict the outcome of reactions involving complex organic molecules.