TRUE OR FALSE

1. At the time of her death, Susan owned some City of Chicago bonds. These bonds are included in her gross estate.
2. At the time of his death, Warren owned some City of Los Angeles bonds. Any accrued interest on these bonds is not included in his gross estate.
3. Betty dies holding some promissory notes issued to her by her brother-in-law. In her will, Betty forgives the notes. The notes are not included in Betty's gross estate.
4. Perry made a taxable gift in 2000 upon which he paid $18,000 in Federal gift tax. If Perry dies in 2002, the $18,000 must be included in his gross estate under the "gross up" rule.
5. In 1980, Spencer creates a revocable trust, income payable to his children for life, remainder to his grandchildren. Thirty-three months before he dies in 2002, Spencer relinquishes the power to revoke the trust. The trust is included in Spencer's gross estate.
6. Two brothers, Jacob and Hunter, purchased real estate as equal tenants in common. Jacob furnished 60% of the purchase price and Hunter the other 40%. At the time the purchase took place, Jacob did not make a gift to Hunter.
7. Two brothers, Gordon and Ross, acquire real estate as equal tenants in common. Of the purchase price of $100,000, Gordon furnished $40,000 while Ross provided the balance. If Gordon dies five years later when the real estate is worth $250,000, his estate includes $125,000 as to the property.