25. Your client received a gift from his boyfriend of expensive jewelry on her birthday. What is the tax consequence? a. The fair market value is excluded from income as a gift. b. The imputed value is included in income because gifts cannot be made between couples. c. The fair market value is income because there seems to be no donative intent. d. The imputed value is excluded from income because the jewelry was purchased at a thrift store. 26. Al works for ABC company and they provide $50,000 in group term life insurance to him. What is the tax consequence? a. Al has $2,000 in income because that is the premium the employer paid for the life insurance policy. b. Al has no income because the price of the premium is excluded for up to $50,000 worth of group term life insurance. c. Al has no income because it is a gift from his employer. d. Al has income of $50,000, the death benefit of the policy. 27. Your client has paid $180,000 for an annuity. According to IRS tables he has a 30- year life expectancy. His monthly payment is $1,000 ($12,000 per year). What amount of the $12,000 is excluded each year from income under the exclusion ratio? a. 0% b. 25% c. 33% d. 50%