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Of the following statements regarding the estate tax, which is false? decedent's gross estate for estate tax purposes will include all assets he owns at the date of her death. A decedent's gross estate for estate tax purposes will not include life insurance policies he owned on his life. Qualifying charitable contributions made by his estate reduces a decedent's taxable estate. A decedent's taxable estate is reduced by the amount of the property transferred from his estate to his/her surviving spouse. Question 32 2.5 pts Mrs. Smith bequeathed to her son a tract of real estate that had a fair market value on the date of her death of $1,000,000 and an adjusted basis of $200,000. Mrs. Smith's son sold the real estate for $1,225,000. What is the amount of taxable gain that he must recognize from this sale? $225,000 $800,000 $675,000 $1,025,000 Twenty two years ago, Mr. Young purchased a $250,000 insurance policy on his own life and named his daughter as sole beneficiary. He has paid $14,250 total premiums to keep this policy in force. This year, he liquidates the policy for its $20,000 cash surrender value. Which of the following statements is true? He is taxed on $5,750, the excess of the cash surrender value over the premiums paid. He is taxed on the entire cash surrender value of $20,000. The entire cash surrender value of $20,000 is non-taxable. He can avoid tax on the liquidation proceeds if he gives them to his daughter

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