Classify Each of the Following Statements

question 2

Multiple Choice

Classify each of the following statements.
-Homer purchases a U.S. savings bond listing title as: "Homer, payable to Bernice upon Homer's death." Bernice is Homer's sister. Homer dies four years later, and Bernice cashes in the bond and keeps the proceeds.

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

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Definitions:

Decibel

A unit of measurement for the intensity of sound, denoting relative loudness.

Pus

A dense, green or yellow liquid found in diseased tissue, made up of deceased white blood cells, bacteria, and tissue remains.

Ossicles

Small bones in the middle ear that transmit sound vibrations from the eardrum to the inner ear.

Stirrup

A bone in the middle ear that transmits sound vibrations to the inner ear.