Identify Which of the Following Statements Is False

question 74

Multiple Choice

Identify which of the following statements is false.

• A) An example of deductions in respect of a decedent (DRD) are property taxes that accrued prior to the decedent's death but were not paid until after death.
• B) Interest earned but not received before death is IRD.
• C) Federal estate taxes related to income in respect of a decedent (IRD) is deductible by the estate in the year the IRD is includible in the estate's gross income.
• D) Items of IRD receive a step- up in basis as a result of the decedent's death.

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Definitions:

Stock Offering

The issuance of new shares by a company to the public or existing shareholders to raise capital.

Number Shares

The total units of stock currently held by all shareholders of a particular company, including restricted shares owned by company insiders.

Venture Capital

Financing provided by investors to startup companies and small businesses with perceived long-term growth potential.

Start-up Enterprises

New business ventures in their initial operational stages, often characterized by high uncertainty and risk, but with potential for significant growth and innovation.