Classify Each of the Following Statements

question 117

Multiple Choice

Classify each of the following statements:
-Under her father's will, Faith is to receive 10,000 shares of GE common stock. Eight months after her father's death, Faith disclaims the 10,000 shares.

• A)No taxable transfer occurs.
• B)Gift tax applies.
• C)Estate tax applies.

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Definitions:

Credit Sale

A transaction where the payment for the purchased goods or services is deferred to a future date.

Credit Applicant

A Credit Applicant is an individual or business entity that applies for a loan or line of credit from a lending institution.

Credit Agencies

Organizations that assign credit ratings for issuers of certain types of debt securities, with the ratings based on the issuer's ability to pay back debt.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.