Identify Which of the Following Statements Is True

question 43

Multiple Choice

Identify which of the following statements is true.

• A) Prospective donors should not dispose of property that has declined in value by selling it rather than gifting it.
• B) If the gifted property's FMV on the date of the gift exceeds its adjusted basis and the donor pays no gift tax, the donee's basis is the same as the donor's basis if the property is sold for a loss.
• C) A $15,000 annual exclusion per donee is available for both gift tax and estate tax purposes.
• D) All of the above are false.

---

Definitions:

Utility Function

A mathematical representation of how different combinations of goods or services produce varying levels of satisfaction or utility to a consumer.

Commodities

Fundamental commodities traded in business that can be exchanged with others of alike kind.

Units Of Good

Measurement quantities used to quantify the amount, number, or level of goods.

Utility Function

A mathematical representation that assigns a value to every possible bundle of goods or services, with the value indicating the level of satisfaction or happiness that the consumer derives from that bundle.