Which of the Following Is a Taxable Gift (Before Applying

question 55

Multiple Choice

Which of the following is a taxable gift (before applying the unified credit) ?

• A)Christian transfers $5,000 to his friend Crystal
• B)Carmen gives $5,000 in stocks to her church
• C)Yamile gives $30,000 to her husband, Jose.
• D)Jessica transfers $30,000 into an irrevocable trust for the benefit of her two children.

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Definitions:

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Residual Income

The amount of income that exceeds the minimum rate of return on a project or investment.

Required Rate Of Return

The minimum percentage return an investor expects to achieve from an investment to make it worthwhile, considering the risk.

Contribution Margin Ratio

The percentage of each sales dollar that remains after deducting variable costs, used to cover fixed costs and provide profit.