An estate tax marital deduction

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Reference no: EM131322834

1. An estate tax marital deduction is available in all of the following situations, except:

a. The decedent spouse’s share of tenancy-in-common property is bequeathed to the surviving spouse through the will.

b. A husband received 60% of his wife’s estate through intestacy therefore a marital deduction is available for 60% of the property transferred to the husband.

c. A husband’s estate transferred $500,000 to his wife through a valid nuptial agreement.

d. A testamentary trust was created by will that gave the surviving spouse income for life with a limited power of appointment over trust corpus. No QTIP election was made.

2. What is the after-tax yield of an AA Corporate bond with a quote yield of 8.00% to an investor with a 25% tax bracket? Be sure you answer has the correct number of digits.?

Default risk is likely to be highest for

A) short-term Treasury securities.

B) AAA corporate securities.

C) long-term Treasury securities.

D) BBB corporate securities.

Reference no: EM131322834

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