Victor Had a Priceless Painting That He Wanted to Give

question 84

Multiple Choice

Victor had a priceless painting that he wanted to give to Gwen,but Victor wanted to keep it hanging in his house so he could see it.Victor physically gave the painting to Gwen,who immediately loaned it back to Victor,so Victor could keep it until Victor died.Upon Victor's death,Gwen claims the painting.Which of the following best describes this situation?

• A) Victor has made a valid gift to Gwen.
• B) This gift is not valid because there is no donative intent.
• C) This gift is not valid because the purported delivery is ineffective.
• D) This gift is not valid because there is no acceptance.
• E) This gift is not valid because there is no consideration.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of rules and standards designed to ensure consistency, fairness, and accuracy in financial reporting and accounting practices in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

Factoring Transaction

A financial transaction where a business sells its accounts receivable to a third party at a discount to obtain immediate cash.

Risks And Rewards

The potential positive or negative outcomes of business activities or investments, considering the chance of gain or loss.