Identify Which of the Following Statements Is True

question 89

Multiple Choice

Identify which of the following statements is true.

• A) Bequests of specific sums of money when distributed out of an estate result in the recognition of gross income by the beneficiary receiving the bequest.
• B) Tier- 2 beneficiaries potentially can receive more favorable tax treatment than tier- 1 beneficiaries.
• C) An individual cannot be both a tier- 1 and tier- 2 beneficiary in the same year.
• D) All of the above are false.

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Definitions:

Market

A place or platform where buyers and sellers meet to trade goods, services, or financial instruments.

Lower-of-cost-or-market

An accounting principle that requires inventory to be recorded at the lower of its original cost or current market value, ensuring assets are not overstated on the balance sheet.

Balance Sheet

A documentation of a company’s financial position, showcasing assets, liabilities, and the equity held by shareholders at a particular instance.

Lower-of-cost-or-market

An accounting principle that valuables inventory at the lower cost between the original purchase cost and its current market price.