Frank owns and is insured by a participating whole life insurance policy with a death benefit of $85,000, including $35,000 of paid-up additions to the face amount. His basis in the policy is $30,000. The beneficiaries are his daughter and son, equally. If he were to die today, what amount of this policy would be valued in Frank's estate?

A) 85000
B) 50000
C) 0
D) 55000

Ans: A) 85000

Business

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Which of the following statements is true about the difference between contracts in common law and civil law systems?

A. Contracts drafted under a common law system tend to be longer than those drafted under a civil law system. B. Contracts drafted under a civil law system tend to be more specific than those drafted under a civil law system. C. It is more expensive to draw up contracts in a civil law system than in a common law system. D. Resolving contract disputes tends to be less adversarial in common law systems than in civil law systems. E. Civil law systems have the advantage of greater flexibility and allow for judges to interpret a contract dispute in light of the prevailing situation but this feature is absent in common law systems.

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Use the information in Table 5.1. Using the traditional method, what is the profit if the company manufactures the optimal product mix (consider variable costs only–overhead is not included in this profit calculation)?

A) less than or equal to $8,100 B) greater than $8,100 but less than or equal to $8,300 C) greater than $8,300 but less than or equal to $8,500 D) greater than $8,500

Business