Final answer:
The correct answer is C) Estate, Gift.
These taxes are applied on the fair market value of assets transferred either after death or during life as gifts.
Step-by-step explanation:
The taxes based on the fair market value of assets being transferred at death or as a gift are the estate tax and the gift tax.
The estate tax is imposed on property transferred upon someone's death, while the gift tax is levied on transfers made as gifts during one's lifetime.
Unlike the excise tax, which is a tax on specific goods like gasoline, tobacco, and alcohol, the estate and gift taxes are applied to the transfer of wealth. It is important to note that these taxes play a role in preventing the avoidance of taxes by the wealthy through the transfer of estates before death.
The correct answer is C) Estate, Gift. These taxes are applied on the fair market value of assets transferred either after death or during life as gifts.