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:

Heater Core

A small, radiator-like component used to supply heat for the passenger compartment.

High-Pressure

Conditions involving greater than normal pressure, often used in the context of fluids or gases within a system.

Degass Bottle

A component in a vehicle’s cooling system that helps remove air from the coolant fluid to prevent overheating and promote efficient operation.

Surge Tank

A container used in fluid systems to absorb excess pressure or provide extra fluid during a demand surge, helping to stabilize the system.