Which, If Any, of the Following Statements Correctly Reflects the Rules

question 202

Multiple Choice

Which, if any, of the following statements correctly reflects the rules applicable to the alternate valuation date (i.e.,
§ 2032) ?

• A) The election is made by the executor.
• B) Can be elected even though no estate tax return has to be filed.
• C) Can be elected only if it reduces the amount of the gross estate or reduces the estate tax liability.
• D) Its election does not affect the income tax basis of property included in the gross estate.
• E) None of the above.

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Definitions:

Comparative Balance Sheet

A financial statement that compares the balance sheets of two periods, highlighting changes in assets, liabilities, and equity.

Net Income

The total profit of a company after subtracting all its expenses from its revenues.

Direct Method

A way to prepare the cash flow statement where actual cash flow information from company’s operations segment is used.

Operating Expenses

Expenses incurred in the normal course of business operations, excluding costs of goods sold and depreciation.