Final answer:
The statement about IRD being included in the gross estate is false; IRD is included in the gross income of the beneficiary or the estate. The statement about the colonists' objection to taxation is true; they were opposed to 'taxation without representation' rather than taxation itself.
Step-by-step explanation:
The statement, 'Income in respect of a decedent (IRD) is included in the gross estate at its fair market value on the appropriate valuation date,' is False. IRD refers to income that was earned by a decedent before they passed away but was not included on their final tax return. Instead, IRD is included in the decedent’s gross income for the tax year when the income is actually received by the estate or beneficiaries. Typically, IRD is reported on the income tax return of the beneficiary or estate that receives it, rather than being included in the gross estate for estate tax purposes.
Regarding the second question, Exercise 7.3.1, the statement 'The colonists did not necessarily object to the principle of taxation, but rather how the tax money would be applied,' is True. The American colonists' main grievance was 'taxation without representation,' meaning they were opposed to taxes imposed by the British Parliament where the colonies had no representation.