Clarence, Anthony, Ruth, and John own equal amounts of stock in Supreme Pie Shop, a C-corporation. They want to adopt a cross-purchase buy-sell agreement providing for them to buy the stock of any one of the shareholders who dies. They will each purchase life insurance on the other owners. When Clarence dies, the other shareholders will buy his stock. Which of the following statements is correct concerning disposition after Clarence’s death of the life insurance owned by Clarence to the other stockholders?

		If Anthony buys the policy from Clarence’s estate that ensures Ruth, the transfer for value rule will be avoided because Anthony is an exempt transferee.
		If the corporation buys the policy from Clarence’s estate that ensures Ruth, the transfer for value rule will be avoided because the corporation is an exempt transferee.
		If John buys the policy from Clarence’s estate that ensures John, the transfer for value rule will apply because John is not an exempt transferee.
		If Ruth buys the policy from Clarence’s estate that ensures Anthony, the full amount of the policy proceeds paid to her at Anthony’s death will be subject to income tax.