Identify Which of the Following Statements Is True

question 74

Multiple Choice

Identify which of the following statements is true.

• A)If a marital deduction is elected on a QTIP trust transfer, property remaining in the QTIP trust is not included in the estate of the surviving spouse.
• B)The credit for state death taxes has been replaced with a deduction for state estate taxes.
• C)The unified credit is the only credit allowed against the estate tax.
• D)All of the above are false.

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Definitions:

Decrease

Refers to the reduction in size, quantity, or importance of something, often quantifiable in financial terms such as profits, values, or sizes.

Inventory

Consists of the goods and materials a business holds for the purpose of resale or production.

Indirect Method

A method for preparing the cash flow statement that adjusts net income for changes in balance sheet accounts to calculate operating cash flows.

Operating Activities

The principal revenue-producing activities of an entity and other activities that are not investing or financing activities.