Which of the Following Gifts Is Not Eligible for the Annual

question 28

Multiple Choice

Which of the following gifts is not eligible for the annual exclusion?

• A)$20,000 given to a spouse
• B)The remainder interest in a trust
• C)$100,000 given to North Carolina State University.
• D)All are eligible for the annual exclusion.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of income, or jurisdiction.

Total Debt Ratio

This ratio measures the proportion of a company's total debt to its total assets, indicating the extent of leverage and financial risk.

Total Assets

The sum of all current and non-current assets that a company owns, used in evaluating the company's financial strength.

Cash Flow

The total amount of money being transferred into and out of a business, affecting the company's liquidity.