Identify Which of the Following Statements Is False

question 66

Multiple Choice

Identify which of the following statements is false.

• A) When persons other than spouses own property jointly, the amount included in the joint owner's gross estate is measured in accordance with the consideration the decedent furnished to purchase the property.
• B) If an annuity ceases payments with the death of the decedent and nothing is to be received by any other party, the annuity is included in the gross estate.
• C) Annuities not related to employment are valued in the gross estate at the cost of a comparable contract multiplied by a fraction that represents the portion of the purchase price that the decedent has contributed.
• D) Statements A and C are true.

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Definitions:

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen; the value of the next best choice.

Financial Investment

The purchase of a financial asset (such as a stock, bond, or mutual fund) or real asset (such as a house, land, or factories) in the expectation of financial gain.

Bank Certificate

A document issued by a bank certifying the deposit of money or financial instruments with a certain value.

Budget

An estimate of income and expenditure for a set period of time.