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rusak2 [61]
2 years ago
14

Death benefit proceeds from a life insurance policy are included in a decedent's gross estate in which of the following circumst

ances:
The decedent gave the policy to his father four years ago, but retained the right to change the name of the beneficiary.
The policy beneficiary is a grantor trust of the decedent but the policy is owned by a closely-held corporation.
The decedent gave the policy to a charity seven years ago.
The decedent transferred the policy to an irrevocable life insurance trust five years ago with no retained incidents of ownership.

A. 2 and 3.
B. 1 and 2.
C. 3 and 4.
D. 1 and 4.
Business
1 answer:
Katarina [22]2 years ago
8 0

Answer:

B. 1 and 2.

Explanation:

Life insurance policy can be defined as a contract between a policyholder and an insurer, in which the insurer agrees to pay an amount of money to a specific beneficiary either upon the death of the insured person (decedent) or after a set period of time.

A decedent refers to a deceased person who is no longer able to control his or her properties (wealth).

Generally, insurance companies across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.

This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.

Death benefit proceeds from a life insurance policy are included in a decedent's gross estate in the following circumstances:

I. The decedent gave the policy to his father four years ago, but retained the right to change the name of the beneficiary.

II. The policy beneficiary is a grantor trust of the decedent but the policy is owned by a closely-held corporation.

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Hence we can conclude that the above case depicts bribery and conflict of interest.

8 0
3 years ago
The prepaid insurance account had a balance of $3,000 at the beginning of the year. The account was debited for $32,500 for prem
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Answer:

1.  Insurance expense A/c Dr $30,700

          To Prepaid insurance A/c $30,700

(Being the insurance expense is adjusted)

2. Insurance expense A/c Dr $30,700

          To Prepaid insurance A/c $30,700

(Being the insurance expense is expired)

Explanation:

The journal entries are shown below:

1. Insurance expense A/c Dr $30,700

          To Prepaid insurance A/c $30,700

(Being the insurance expense is adjusted)

The computation is shown below:

= Balance in  prepaid insurance account + premiums on policies purchased - unexpired insurance applicable

= $3,000 + $32,500 - $4,800

= $30,700

2. Insurance expense A/c Dr $30,700

          To Prepaid insurance A/c $30,700

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7 0
2 years ago
ABC Software operates stores within five regions. Regional managers are held accountable for marketing, advertising, and sales d
joja [24]

Answer:

The type of responsibility center ABC software company can use to evaluate its regions and stores is called Investment Center.

Explanation:

An investment center is a responsibility center that handles, revenues, expenses as well as investment base.

This kind of responsibility center is appropriate for large companies like ABC software.

It is designed to cater for the different regions and stores as well as the product specifications and managerial responsibilities.

It is applicable for companies with regional mangers and store managers that take decisions on which stores to open, marketing plan, advertising, sales, accounting and financial decisions.

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3 years ago
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Oduvanchick [21]

Answer: Inside order taker

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 According to the given question, Hollie is works as the salesperson for the Land's end and her duty is to taking the various types of orders from the consumer over the mobile or telephone system and ensure that the information is properly given by the consumer.

 The inside order taker then making a proper entries of the orders and it also helps in increase the customer frequency for the new orders in an organization.  

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b

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