Identify Which of the Following Statements Is False

question 70

Multiple Choice

Identify which of the following statements is false.

• A) Assets in a revocable trust do not avoid probate.
• B) The IRS may terminate an estate as a taxpayer after the expiration of a reasonable period of time for performance of the administrative duties.
• C) For purposes of trust administration, the term "sprinkling" relates to the discretionary authority of the trustee to distribute income among various beneficiaries.
• D) Assets in a revocable trust are included in the gross estate.

---

Definitions:

Total Costs Line

Represents the aggregate of all costs (fixed and variable) associated with the production of goods or services, often illustrated graphically in cost-volume-profit analysis.

Break-even Sales

Break-even sales represent the amount of revenue required to cover all fixed and variable costs, resulting in neither profit nor loss.

Unit Variable Costs

The costs that vary directly with the level of production or sales volume, such as materials and labor, calculated on a per-unit basis.

Break-even Sales

The amount of revenue from sales needed to cover all of a company’s operating expenses, resulting in neither profit nor loss.