With no explanation, chose the best option from "A", "B", "C" or "D". tax annual exclusion under section 2503(b) are regarded as taxable transfers_” Treas. Reg. 25.2518-2(c)(3). Clearly, the sentence upon which the Eleventh Circuit and now our Court mistakenly rely is concerned with the $10,000 annual exclusion on gifts and has absolutely nothing to do with pre-Act transfers. There is a definitive difference between a taxable transfer that qualifies for the annual exclusion and on which a gift tax therefore is not imposed, such as an annual $10,000 check to a favorite nephew, and a transfer as to which the gift tax is not even applicable, such as a transfer pursuant to an obligation created in an antenuptial agreement executed in 1931 between a man and woman married later that year. See Commissioner v. Copley’s Estate, 194 F.2d 364, 367 (7th Cir.1952) (<HOLDING>). The creation of the Ordway trust in 1917

A: holding that transfers made in 1936 and 1944 pursuant to the 1931 agreement were not taxable because to hold as the commissioner would have us do  would require a retroactive application of the gift tax which we think is not permissible see sec 501b of the revenue act of 1932
B: holding that the act is retroactive
C: holding retroactive application
D: holding that the act is not retroactive
A.