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

question 68

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 in his pension plan is:

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 $1,100,000.
• D)Jason's gross estate must include $1,500,000.
• E)None of the above.

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Definitions:

Real Balances Effect

The change in consumption and savings behavior resulting from an alteration in purchasing power due to inflation or deflation.

Financial Assets

Economic resources or ownership rights that are intangible and represent a claim to future payments, such as stocks, bonds, or bank deposits.

Aggregate Supply Curve

A graph showing the relationship between the total quantity of goods and services that producers are willing to supply at different price levels.

Cyclical Unemployment

Unemployment that results from business cycle fluctuations in the economy, typically increasing during recessions and decreasing during expansions.