In a Community Property State,jointly Owned Property Left to the Surviving

question 99

Multiple Choice

In a community property state,jointly owned property left to the surviving spouse will have a basis after the estate is settled equal to

• A)the decedent's basis before death.
• B)the total fair market value of the entire property at the date of death (if the alternative valuation date was not elected).
• C)half of the fair market value of the entire property at the date of death (if the alternative valuation date was not elected).
• D)half of the basis just before death,plus half of the fair market value at the date of death (if the alternative valuation date was not elected).

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Definitions:

MPC

Marginal Propensity to Consume, the proportion of an increase in income that gets spent on consumption.

Multiplier Effect

The phenomenon where an initial increase in spending leads to a larger increase in income and consumption within the economy.

Net Exports

The value of a country's total exports minus its total imports, representing the net trade balance.

MPC

The Marginal Propensity to Consume, representing the proportion of any additional income that a consumer spends on goods and services, as opposed to saving it.