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In 2000, Irv Creates a Revocable Trust, Income Payable to His

question 172

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In 2000, Irv creates a revocable trust, income payable to his children for life, remainder to his grandchildren. In 2010, Irv relinquishes the power to revoke the trust. If Irv dies in 2016, the trust is not included in his gross estate.


Definitions:

Net Operating Income

The profit generated from a company's regular, core business operations, excluding deductions of taxes and interest.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) divided by the number of units produced.

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of a product.

Unit Product Cost

The total cost assigned to a single unit of product, including direct materials, direct labor, and allocated overhead.

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