Which, If Any, of the Following Procedures Reduces Both Ned's

question 72

Multiple Choice

Which, if any, of the following procedures reduces both Ned's gross estate and probate estate?

• A)Ned purchased a CD listing title as "Ned, payable on proof of death to Eileen." Eileen is Ned's niece.
• B)Four years ago, Ned named his wife as the designated beneficiary of his IRA. (Previously, Ned's estate was the designated beneficiary.)
• C)Using her funds, Ned's wife purchased real estate listing herself and Ned as "tenants by the entirety with right of survivorship."
• D)Four years ago, Ned made a gift of an insurance policy on his life to his daughter (the designated beneficiary).
• E)None of the above.

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Definitions:

Periodic Inventory System

An inventory accounting system where updates to inventory accounts occur at specific intervals, typically at the end of an accounting period.

LIFO

An inventory valuation method where the last items added to inventory are considered the first ones sold during a period of time; stands for Last-In, First-Out.

FIFO

An accounting method for inventory valuation where the first items acquired are the first ones sold, standing for First In, First Out.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency in managing stock levels.