Identify Which of the Following Statements Is True

question 27

Multiple Choice

Identify which of the following statements is true.

• A)The alternate valuation date can be used for estate tax purposes only if the election increases the value of the gross estate.
• B)If the alternative valuation date is elected, changes in value that occur solely because of "mere lapse of time" usually are to be ignored.
• C)The gross estate, a federal law concept, is generally smaller than the probate estate, a state law concept.
• D)All of the above are false.

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Definitions:

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often after group discussion.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational decision-making outcome.

Heuristics

Cognitive shortcuts or rules of thumb that simplify decision making, often leading to quick but sometimes inaccurate judgments or predictions.

Decision-making Biases

Systematic errors in thinking that affect the decisions and judgments that people make.