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.

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Definitions:

Transmitting Data

The process of sending data from one place to another through various mediums, such as cables, radio waves, or internet protocols.

Troubleshooting

The process of diagnosing the source of a problem in a system or machine and determining how to solve it.

Faulty Operation

Performance of a machine, process, or system that deviates from normal or expected functioning due to errors or defects.

RSWho Function

A diagnostic tool in Rockwell Automation software used to browse and identify devices on a network.