On September 1, George transfers his entire ownership rights in a $250,000 life insurance policy on his own life to his sister, Sally. The policy's interpolated terminal reserve is $30,000 as of September 1. On July 1, George had paid the policy's $6,000 annual premium. What are the gift tax consequences, if any?
What will be an ideal response?
George is considered to have made a gift to Sally of the interpolated terminal reserve, $30,000, plus the amount of the annual premium attributable to the period after he gave her the policy, $5,000 ($6,000 × 10/12), for a total gift of $35,000.
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W. Bradley Consulting Service sold services for cash. This transaction would result in a(n)
a. increase to Income from Services with a debit. b. increase to cash with a credit. c. increase to Income from Services with a credit. d. decrease to cash with a credit.
In a sound internal control system, all cash receipts should be deposited daily intact
a. True b. False Indicate whether the statement is true or false
List the four levels that companies are typically distributed on.
What will be an ideal response?
Distinguish a dependent variable from an independent variable
What will be an ideal response?