Identify Which of the Following Statements Is False

question 37

Multiple Choice

Identify which of the following statements is false.

• A)For purposes of trust administration, the term "sprinkling" relates to the discretionary authority of the trustee to distribute income among various beneficiaries.
• B)The IRS may terminate an estate as a taxpayer after the expiration of a reasonable period of time for performance of the administrative duties.
• C)Assets in a revocable trust do not avoid probate.
• D)Assets in a revocable trust are included in the gross estate.

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or services based on a chosen activity base.

Standard Activity Index

A benchmark used to measure the amount of activity, productivity, or performance in a given scenario, often compared to an industry standard.

Budgeted Overhead Costs

The estimated costs related to the indirect aspects of manufacturing or service delivery that are planned for a specific period.

Board Feet

A unit of measure for the volume of lumber, representing a piece of wood that is one foot long, one foot wide, and one inch thick or its cubic equivalent.