Identify Which of the Following Statements Is True

question 32

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 unified credit is the only credit allowed against the estate tax.
• C) The credit for state death taxes has been replaced with a deduction for state estate taxes.
• D) All of the above are false.

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Definitions:

Net Present Value

A financial metric that calculates the value of a projected investment's net cash flows, discounted back to their present value.

Cash Flow

A measure of the amount of cash generated and used by a company in a given period, vital for assessing the health and liquidity of a business.

Health Canada

The federal department responsible for helping Canadians maintain and improve their health, ensuring access to high-quality health services.

Expected NPV

The anticipated net present value, which estimates the difference between the present value of cash inflows and the present value of cash outflows over a certain period.