In Which, If Any, of the Following Independent Situations Has

question 20

Multiple Choice

In which, if any, of the following independent situations has Trent made a gift?

• A) Trent established an irrevocable trust, income payable to himself for life and, upon his death, remainder to his children.
• B) Trent dies owning a U.S. savings bond with ownership listed as: "Trent, payable to Sue on Trent's death."
• Sue redeems the bond.
• C) Trent sends $25,000 to Alice's oral surgeon in payment of her dental implants. Alice is Trent's sister and
• Does not qualify as his dependent.
• D) Trent pays Eva $800,000 in a property settlement of her marital rights. One month later Trent and Eva are divorced.
• E) None of the above.

---

Definitions:

Penetration Pricing

Strategy that sets a low price as a major marketing tactic.

Market Recognition

The degree to which a company or product is known and acknowledged by potential customers and the wider market.

Breakeven Point

The moment when total costs and total revenues are exactly equal, meaning that a business or project is neither making a profit nor experiencing a loss.

Variable Costs

Costs that change in proportion to the level of goods or services produced.