Which of the Following Is a True Statement

question 105

Multiple Choice

Which of the following is a true statement?

• A)A serial gift strategy utilizes inter vivos gifts to multiple donees over multiple years to maximize the annual exclusion.
• B)A serial gift strategy works well even if the gifts don't qualify as present interests.
• C)A bypass trust avoids all estate taxes on the estate of the first spouse to die.
• D)The income tax savings from holding appreciated property until death are always outweighed by the additional estate tax imposed on the property.
• E)None of the choices are true.

Understand the mechanics and implications of occupational segregation.

Be familiar with income equality measures, including the Lorenz curve and Gini coefficient.

Analyze the relationship between income inequality, economic efficiency, and social welfare.

Recognize the role of skills, abilities, and discrimination in creating income disparities.

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Definitions:

Dividends Payable

Liabilities on a company's balance sheet representing the amount of dividends declared by the board of directors but not yet paid to shareholders.

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Retained Earnings

is the portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment or debt payment.

Date of Record

The specific date set by a corporation on which the shareholders must be on the company's books in order to receive a declared dividend or participate in a corporate action.