Identify Which of the Following Statements Is True

question 3

Multiple Choice

Identify which of the following statements is true.

• A)If the annual exclusion for gifts is not used in the current year, the unused portion can be carried forward to subsequent years.
• B)Individuals may not give more than $14,000 per person in gifts each year before being taxed on the transfer.
• C)For transfer tax purposes, both the charitable contribution deduction and the marital deduction are unlimited.
• D)All of the above are false.

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Definitions:

Physically Counting

The manual process of counting inventory items one by one to verify the quantity on hand.

Current Assets

Assets that are expected to be converted into cash within one year or one business cycle.

Balance Sheet

A statement that provides a snapshot of a company's financial status, including assets, liabilities, and shareholders' equity at a defined point in time.

FOB Destination

A shipping term where the seller bears shipping costs and retains ownership until the goods reach the buyer's location.