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

question 174

Multiple Choice

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

• A)Trent established an irrevocable trust, income payable to himself for life and, upon his death, remainder to his children.
• B)Trent dies owning a U.S. savings bond with ownership listed as: "Trent, payable to Sue on Trent's death." Sue redeems the bond.
• C)Trent sends $25,000 to Alice's oral surgeon in payment of her dental implants. Alice is Trent's sister and does not qualify as his dependent.
• D)Trent pays Eva $800,000 in a property settlement of her marital rights. One month later Trent and Eva are divorced.
• E)None of the above.

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Definitions:

Materials

Substances or components used in the manufacturing or production of goods.

Equivalent Unit

A measure used in process costing that converts partially completed units into a number of fully completed units for accounting purposes.

First-in

A term often used to describe inventory valuation methods, implying the first items produced or purchased are the first sold.

Materials

Raw substances or components that are used in the manufacturing process to produce goods.