American College Exam HS330 Topic 3 Question 95 Discussion

Actual exam question for American College's HS330 exam

Question #: 95
Topic #: 3

On January 1, 2004 a father gave his daughter a $50,000 straight (ordinary) life insurance policy on his life. Premiums are paid annually. The pertinent facts about the policy are:

Date of issue: July 1, 1 992

Premium paid on July 1, 2003 $800

Terminal reserve on July 1, 2003 5,000

Terminal reserve on July 1, 2004 6,000

What is the value of the policy for federal gift tax purposes?

A$5400

B$5,800

C$5,900

D$50,000

Show Suggested Answer

Suggested Answer: C

by Erick at Aug 24, 2024, 02:04 AM

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Moira

1 days ago

I think the answer is B) $5,800.

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