9. Which of the following is NOT a test that must be met in order for a product to be defined as life insurance for federal income tax purposes? A) The cash value accumulation test B) Compliance with IRS code section 7702 C) The premium value test D) The cash guideline premium and corridor test

10. Which of the following statements does NOT correctly state a characteristic of a commercial annuity? A) With an annuity, there is a maximum annual contribution per year, which is adjusted yearly for inflation. B) An annuity payment is generally part return of capital and part interest payment. C) Annuity contracts may vary regarding the payment time period and the frequency of the payments. D) An annuity is a contract in which investments are made in exchange for a promise of regular frequent payments for the rest of a taxpayers life or a fixed period of time.

11. Two years ago, Rhonda received a gift of 100 shares of common stock from her parents. The fair market value of the stock on the date of the gift was $80 per share. Her parents had purchased the stock four years earlier at $60 per share. Rhonda sold this stock for $102 per share last week. What was Rhonda's per-share basis in the stock when it was sold? A) 182 B) $60 C) $102 D) $80

12. Michelle has interest and short-term capital gain income of $9,000 during the current tax year. She paid brokers' commissions of $1,000, $2,200 in investment advisors' fees, and had $7,700 of interest expense on funds borrowed to purchase securities. Michelle has an adjusted gross income of $105,000. What amount of investment interest expense may be deducted as an itemized deduction? A) $5,800 B) $7,700 C) $6,700 D) $9,000