Identify Which of the Following Statements Is True

question 93

Multiple Choice

Identify which of the following statements is true.

• A) A testamentary trust can be converted into a QSST trust.
• B) A trust can own S corporation stock and have a C corporation as a beneficiary as long as the corporation is the sole beneficiary.
• C) A QSST is an arrangement whereby the stock owned by a number of shareholders is placed under trust control for purposes of exercising the stock voting rights.
• D) All of the above are false.

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Definitions:

Freight-In

The cost associated with transporting goods into a business, usually included in the inventory cost of purchased goods.

Perpetual Inventory System

An accounting method that records inventory transactions in real-time, continuously updating inventory and cost of goods sold.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for the goods and the cost of transportation at the point of departure from the seller's shipping point.

Shipping Costs

These are expenses incurred in transporting goods from one location to another, typically covered by the seller or the buyer, depending on the shipping terms.