Which of the Following Best Describes the Doctrine of Abatement

question 112

Multiple Choice

Which of the following best describes the doctrine of abatement?

• A) When there are not enough assets to satisfy all the gifts in the will, the residual gifts will be the last to be paid.
• B) When assets are distributed to lineal descendants, equal shares are given to all descendants, regardless of which generation they are in.
• C) If a decedent dies without owning the property that was the subject of a specific gift in the will, the beneficiary will receive nothing for it.
• D) If a testator leaves a specific gift of property to a beneficiary, but the property is no longer in the estate of the testator when he or she dies, the beneficiary receives nothing under the doctrine of abatement.
• E) If a will provides for general gifts and there are not enough assets to satisfy all gifts, then bequests to individuals abate last.

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Definitions:

Fixed Expenses

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

Absorption Costing

A technique in accounting where all expenses from manufacturing, covering direct materials, direct labor, and overhead expenses variable and fixed, are included in the cost of a product.

Direct Materials

Raw materials that can be directly traced to the production of finished goods.

Fixed Costs

Expenses that do not change in total despite fluctuations in production levels or sales volume.