Three months after Emma died,her executor received the final $10,000 installment of Emma's Super Lottery winnings from the state.Which of the following statements is true?

Question

Quizplus · Accepted Answer

The $10,000 is included in Emma's gross estate as it was received within three years of her death. It is also subject to tax on her estate's income tax return. Therefore, option D is correct. Option A is incorrect because the $10,000 is subject to estate tax. Option B is incorrect because it is also subject to estate tax, not just income tax. Option C is also incorrect as the $10,000 is received as part of Emma's estate and is subject to estate tax.

Three Months After Emma Died,her Executor Received the Final $10,000