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Many years aga, Georges invested in an apartment building that he wants to bequeath to his three daughters Annie, Stella and Maxime when he dies.

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Many years aga, Georges invested in an apartment building that he wants to bequeath to his three daughters Annie, Stella and Maxime when he dies. He has just found out that there will then be a large tax liability on the capital gain, which could force his daughters to sell the building. The fair market value (FMV) of the building is $1,000,000 and its adjusted cost base (ACB) is $300,000. Georges's marginal tax rate is 50% He is thinking of buying life insurance for his daughters to cover the capital gains tax How much would the tax liability be if Georges were to die in the near future? a $500,000 LOD) $350,000 Od $250.000 OD) $175.000

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