1. Chuck and Nancy take their pet rock company public and are soon multimillionaires. Recognizing the volatility facing the pet rock industry, Chuck paid 60% of the cost for a $5M joint and survivor annuity that pays $200K a year. A comparable annuity for Nancy based on her current age would cost $4M and at original purchase age would cost $6M. Chuck dies in a freak rock stampede 5 years later. What amount will be in his GE? A. $0 B. $200,000 C. $2,400,000 D. $5,000,000

QUESTION 2 1. Chuck and Nancy take their pet rock company public and are soon multimillionaires. Recognizing the volatility facing the pet rock industry, Chuck purchased a $5M straight life annuity that pays $200K a year. Chuck dies in a freak rock stampede 5 years later. What amount will be in his GE? A. $0 B. $200,000 C. $2,400,000 D. $5,000,000

QUESTION 3 1. Mike makes the following transfers: 2 years ago: SOLD the life insurance policy to his cousin, $1M DB, $250 CSV $100,000 Stock Portfolio to his sister $50,000 RV to his son Paid gift taxes of $55,000 Last year: $50,000 cash to brother Paid $10,000 in gift taxes He died this year owning a $250,000 home ($100,000 basis) tenancy by the entirety, $50,000 stock portfolio, $500,000 in his 401K with his wife named as the beneficiary, a $50,000 car, and $25,000 in cash. Calculate his gross estate. A. $1,815,000 B. $815,000 C. $325,000 D. $0 20 points

QUESTION 4 1. Mike makes the following transfers: 2 years ago: Life insurance policy to his cousin, $1M DB, $250 CSV $100,000 Stock Portfolio to his sister $50,000 RV to his son Paid gift taxes of $55,000 Last year: $50,000 cash to brother Paid $10,000 in gift taxes He died this year owning a $250,000 home ($100,000 basis) tenancy by the entirety, $50,000 stock portfolio, $500,000 in his 401K with his wife named as the beneficiary, a $50,000 car, and $25,000 in cash. Calculate his gross estate. A. $1,815,000 B. $815,000 C. $325,000 D. $0

QUESTION 5 1. A father deeded a house as a gift to his daughter 20 years ago but retained the right to live in it until his death. He died this year while still living in the . The following are relevant facts: The father bought the property in 1982 for $60,000. The fair market value of the property when the gift was made in 1995 was $140,000. The father filed a timely gift tax return but paid no gift tax because of the basic credit amount. The fair market value of the property at the fathers death was $190,000. The daughter sold the property 3 months after her fathers death for $190,000. She had a gain of A. $0 B. $50,000 C. $130,000 D. $190,000 20 points .