In Which, If Any, of the Following Independent Situations Has

question 66

Multiple Choice

In which, if any, of the following independent situations has Jean made a gift?

• A)Jean gives her 19-year old son $20,000 to be used by him for his college expenses.
• B)Jean buys her non-dependent grandfather a new $120,000 RV for his birthday.
• C)Jean sends $14,000 to Temple University to cover her nephew's tuition. The nephew does not qualify as Jean's dependent.
• D)Jean contributes $10,000 to her U.S. Senator's reelection campaign.
• E)None of the above.

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Definitions:

Income Statement

A financial document summarizing a company's revenues, expenses, and profit over a specific period, typically quarterly or annually.

Financing Activities

Transactions and events where cash is raised or repaid to finance the company, including debt, equity, and dividend payments.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the current or upcoming fiscal year.

Debt Securities

Financial instruments representing money that is borrowed and must be repaid, with terms that define the amount borrowed, interest rate, and maturity date.