Statement 1: Pedro died giving Juan the power to appoint a person who will inherit his house and lot. Juan however, can only choose among Ana, Lorna or Fe. Juan decided to transfer the property to Fe through the former decedent’s will. The transfer from Juan to Fe is subject to estate tax. Statement 2: During Peter’s lifetime, he decided to give John as a gift his car subject to the condition that if John does not become a CPA within 3 years, Peter shall revoke the transfer. In the second year however, Peter died. The car should form part of Peter’s gross estate. Only statement 1 is correct Both statements are correct Only statement 2 is correct Both statements are incorrect
Statement 1: Pedro died giving Juan the power to appoint a person who will inherit his house and lot. Juan however, can only choose among Ana, Lorna or Fe. Juan decided to transfer the property to Fe through the former decedent’s will. The transfer from Juan to Fe is subject to estate tax. Statement 2: During Peter’s lifetime, he decided to give John as a gift his car subject to the condition that if John does not become a CPA within 3 years, Peter shall revoke the transfer. In the second year however, Peter died. The car should form part of Peter’s gross estate. Only statement 1 is correct Both statements are correct Only statement 2 is correct Both statements are incorrect
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 32P
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Question
- Statement 1: Pedro died giving Juan the power to appoint a person who will inherit
his house and lot. Juan however, can only choose among Ana, Lorna or
Fe. Juan decided to transfer the property to Fe through the former
decedent’s will. The transfer from Juan to Fe is subject to estate tax.
Statement 2: During Peter’s lifetime, he decided to give John as a gift his car subject to
the condition that if John does not become a CPA within 3 years, Peter
shall revoke the transfer. In the second year however, Peter died. The
car should form part of Peter’s gross estate.
- Only statement 1 is correct Both statements are correct
- Only statement 2 is correct Both statements are incorrect
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