Identify Which of the Following Statements Is False

question 72

Multiple Choice

Identify which of the following statements is false.

• A) Every grantor is entitled to a $5.25 million exemption from the GSTT in 2011.
• B) If Greg transfers assets directly to his grandson, this transaction would be an example of a direct skip.
• C) The GSTT is levied at a flat rate, which is higher than the top rate under the estate tax rate schedule.
• D) If Shaad transfers property in trust to his son, with the remainder to his grandson, at the death of the son a taxable termination will result.

---

Definitions:

Account Affected

The specific ledger account impacted by a financial transaction, indicating where changes in value are recorded.

Debit and Credit

Accounting terms used to record transactions in the accounts, where debits increase asset or expense accounts and decrease liability, equity, or revenue accounts, and credits do the opposite.

Operations

The day-to-day activities involved in running a business that lead to the production of goods and delivery of services.

Journalizing

Journalizing is the process of recording transactions in a company's journal prior to posting them to the general ledger.