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2 Many years ago, Douglas invested in an apartment building that he wants to bequeath to his children David and Jeanne when he dies.
2 Many years ago, Douglas invested in an apartment building that he wants to bequeath to his children David and Jeanne when he dies. He has just found out that there will then be a large tax liability on the capital gain, which could force his children to sell the building. The fair market value (FMV) of the building is $900,000 and its adjusted cost base (ACB) is $270,000. Douglas's marginal tax rate is 50%. He is thinking of buying life insurance for his children to cover the capital gains tax. How much would the tax liability be if Douglas were to die in the near future? O $157,500 O $225,000 O $315,000 O $450,000 pose 1 option Examity Proctoring is sharing your screen. Stop sharing Hide
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