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Classify Each of the Following Statements

Question 112

Multiple Choice

Classify each of the following statements.
-Homer purchases a U.S. savings bond listing title as: "Homer, payable to Bernice upon Homer's death." Bernice is Homer's sister. Homer dies four years later, and Bernice cashes in the bond and keeps the proceeds.


A) No taxable transfer occurs.
B) Gift tax applies.
C) Estate tax applies.

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