Foreach of the followingindependentsituations,give the answerrequested.Possible answers are at bottom page.

Jacob placed into trust assets worth $1,000,000.Kelley is to receive income from this trust for a period of 10 years,afterwhichtime the trust is to be terminated and the remaining assets distributed to Lester.Assume the applicable federal rate (AFR) is 4%.What is the value of the income interest received by Kelley?

-

A.

B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

Jacob placed into trust assets worth $1,000,000.Kelley is to receive income from this trust for a period of 10 years,afterwhichtime the trust is to be terminated and the remaining assets distributed to Lester.Assume the applicable federal rate (AFR) is 4%.What is the value of theremainder interest received by Lester?

-

A.

B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

Jacob placed into trust assets worth $1,000,000.Kelley is to receive from this trust an annual annuity of $100,000for a period of 10 years,afterwhichtime the trust is to be terminated and the remaining assets distributed to Lester.Assume the applicable federal rate (AFR) is 4%.What is the value of the income interest received by Kelley?

-

A.

B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

Jacob placed into trust assets worth $1,000,000.Kelley is to receive from this trust an annual annuity of $100,000for a period of 10 years,afterwhichtime the trust is to be terminated and the remaining assets distributed to Lester.Assume the applicable federal rate (AFR) is 4%.What is the value of theremainder interest received by Lester?

-

A.

B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

Jacob placed into trust assets worth $1,000,000.Kelley is to receive income from this trust for as long as she lives (Kelley's age is 65),afterwhichtime the trust is to be terminated and the remaining assets distributed to Lester.Assume the applicable federal rate (AFR) is 4%.What is the value of the income interest received by Kelley?

-

A.

B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

Jacob placed into trust assets worth $1,000,000.Kelley is to receive income from this trust for as long as she lives (Kelley's age is 65),afterwhichtime the trust is to be terminated and the remaining assets distributed to Lester.Assume the applicable federal rate (AFR) is 4%.What is the value of theremainder interest received by Lester?

-

A.

B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

Jacob placed into trust assets worth $1,000,000.Kelley is to receive income from this trust for as long as she lives (Kelley's age is 45),afterwhichtime the trust is to be terminated and the remaining assets distributed to Lester.Assume the applicable federal rate (AFR) is 3.2%.What is the value of the income interest received by Kelley?Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in theResourceslinkin BlackBoard.

-

A.

B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

Jacob placed into trust assets worth $1,000,000.Kelley is to receive income from this for as long as she lives (Kelley's age is 75),afterwhichtime the trust is to be terminated and the remaining assets distributed to Lester.Assume the applicable federal rate (AFR) is 3.2%.What is the value of the income interest received by Kelley?Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the ResourceslinkinBlackBoard.

-

A.

B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

Jacob placed into trust assets worth $1,000,000.Kelley is to receive from this trust an annual annuity of $100,000 for as long as she lives (Kelley's age is 45),afterwhichtime the trust is to be terminated and the remaining assets distributed to Lester.Assume the applicable federal rate (AFR) is 3.2%.What is the value of theremainder interest received by Lester?Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in theResourceslinkin BlackBoard.

-

A.

B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

Jacob placed into trust assets worth $1,000,000.Kelley is to receive from this trust an annual annuity of $100,000 for as long as she lives (Kelley's age is 75),afterwhichtime the trust is to be terminated and the remaining assets distributed to Lester.Assume the applicable federal rate (AFR) is 3.2%.What is the value of theremainder interest received by Lester?Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in theResourceslinkin BlackBoard.

A.$811,090

B.$471,510

C.$188,910

D.$633,370

E.Noneof theother answers is correct

F.$124,080

G.$324,436

H.$528,490

I.According to Table S (3.2% AFR), $1,000,000 is not sufficient to fund an annuity of $100,000.Accordingly, the value of the remainder interest is zero.

J.$675,564

K.$280,290