Mrs. Helen Johnson, a wealthy entrepreneur and business owner, has just died. Which of the following assets will be included in her gross estate?

I. A life insurance policy on the life of Mrs. Johnson that her son Waldo purchased 22 months prior to her death.

II. A life insurance policy on the life of Mrs. Johnson that she transferred to her daughter Rosalinda 32 months prior to her death.

III. A loft in downtown Austin, Texas that Mrs. Johnson deeded to her spouse Alfonzo 24 months before she died.

IV. Gift tax paid as a result of a large taxable gift to her brother Jimmy, used to pay off his gambling debts 12 months before she died.

A. I, II.

B. I, II, IV.

C. I, IV.

D. II, IV.