At the Time of His Death,Jason Was a Participant in Silver

question 16

Multiple Choice

At the time of his death,Jason was a participant in Silver Corporation's qualified pension plan and group term life insurance.The balance of the survivorship feature in his pension plan is:
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The term insurance has a maturity value of $100,000.All amounts are paid to Pam,Jason's daughter.One result of these transactions is:

• A)Pam must pay income tax on $300,000.
• B)Pam must pay income tax on $1,100,000.
• C)Jason's gross estate must include $1,200,000.
• D)Jason's gross estate must include $1,500,000.

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Definitions:

Defective Corporation

A corporation whose incorporation process included an error or omission.

Corporate Status

A legal status that allows a company to operate as its own legal entity, separate from its owners.

Charitable Donations

Voluntary contributions made to nonprofit organizations or causes without expectation of receiving something in return.

Closely Held Corporations

Corporations that have a small group of shareholders with no market for buying or selling company stock. They often involve family businesses.