Which of the Following Is Not a Credit for Purposes

question 67

Multiple Choice

Which of the following is not a credit for purposes of computing the federal estate tax liability?

• A)credit for gift tax paid on pre-1977 gifts
• B)credit for estate taxes paid on certain prior transfers
• C)a credit for foreign death taxes
• D)All of the above are credits for the federal estate tax.

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Definitions:

Compounded Annually

Interest calculation method where interest is added to the principal once a year, allowing the total sum to grow at an annual rate.

Accumulate Interest

The process by which earned interest is added to the principal, allowing future interest calculations to be based on the increased balance.

Constant Amount

A fixed sum that does not change over a specified period.

Compounded Monthly

A method of calculating the growth of an investment where the interest earned is added to the principal so that the balance doesn't merely grow, it grows at an increasing rate.