Classify Each of the Following Statements

question 35

Multiple Choice

Classify each of the following statements.
-Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Horace predeceases Nadine.

• A)No taxable transfer occurs.
• B)Gift tax applies.
• C)Estate tax applies.

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Definitions:

Merger

The combination of two or more entities into one, typically by offering stockholders of one entity shares in the acquiring company.

Majority Shareholder

An individual or entity that owns more than half of a company's shares, giving them significant control.

Premium

The amount paid for an insurance policy, or an amount paid above the normal cost of something.

Zapata Corp. V. Maldonado

A legal case establishing a framework for evaluating the demand for a derivative lawsuit in corporate law, particularly regarding a corporation's refusal to sue.