Nancy purchased an annuity for $100,000 which pays $3,900 a month for life. She receives her first payment and dies the next day. Assume the inclusion ratio is 50% and her AGI is $150,000. Which statement is true? (I) Payments will continue for the beneficiary on the policy (II)The annuity basis at the time of her death is $98,500. A. (I) only B. (II) only C. Neither (I) nor (II) (answer) D. Both (I) and (II)