Identify Which of the Following Statements Is False

question 52

Multiple Choice

Identify which of the following statements is false.

• A)The marital deduction for gift tax purposes is limited to one-half the value of the property transferred.
• B)The marital deduction is generally allowed since the transfer remains within the economic (husband/wife)unit.
• C)The marital deduction for gift tax purposes is limited to the amount of the includible gift (e.g., the amount of the gift that is in excess of the annual exclusion).
• D)Transfers of community property are eligible for the marital exclusion.

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Definitions:

Callable

A feature of certain securities that gives the issuer the right to redeem the security before its maturity date, often at a specified price.

Issuing Corporation

The company or entity that offers its securities for sale to investors for the purpose of raising capital.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges.

Bond Interest Expense

The cost incurred by an issuer of bonds due to the periodic interest payments made to bondholders.