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Belinda is the annuitant of an annuitant-driven contract owned by her husband. Their daughter, Kate, age 22, is the beneficiary. The net premium for the
Belinda is the annuitant of an annuitant-driven contract owned by her husband. Their daughter, Kate, age 22, is the beneficiary. The net premium for the annuity was $250,000, and the death benefit payable to Kate is $300,000. What tax penalty will Kate owe if death benefits are paid due to Belinda's death? (Search Chapter 5)
a. $0
b. $5,000
c. $25,000
d. $30,000
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