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:

Advertising Budget

The sum of funds designated for the promotion of a brand, product, or service within a certain time frame.

Net Operating Income

A company's profit after subtracting operating expenses, excluding interest and taxes.

Monthly Sales

The total revenue generated from the sale of goods or services in one month.

Unit Contribution Margin

The gap between the price per unit at which an item is sold and its per-unit variable expense.