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Carol and Mike live in Alaska (CP state). Mike purchases a $500,000 life insurance policy...

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Accounting

Carol and Mike live in Alaska (CP state). Mike purchases a $500,000 life insurance policy on his life and names his daughter Julie the beneficiary. Mike pays the life insurance premiums with marital assets. At Mikes death, $500,000 death benefits are paid to Julie.

A. How much of the proceeds will be included in Mikes gross estate, subject to estate tax?

B. Are there any gift tax consequences to either Mike or Carol for the $500,000 paid to Julie? If so, what?

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