Which of the Following Statements Is Not True

question 32

Multiple Choice

Which of the following statements is not true?

• A)​Medical payments made on someone else's behalf are considered taxable gifts.
• B)​Gifts between spouses are not subject to gift tax.
• C)Making gifts throughout one's lifetime may reduce estate taxes.​
• D)The annual maximum allowable exclusion for gifts is adjusted for inflation.​

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Definitions:

Useful Life

The period over which an asset is expected to be usable for its intended purpose, affecting depreciation calculations.

Operating Costs

Expenses associated with the day-to-day functioning of a business, excluding costs related to production.

Service Hours

A measure of the time that employees or machines are actively providing services, often used in allocating service costs or assessing productivity.

Net Operating Income

The profit generated from a company's core business operations, excluding costs and expenses from financing and investing activities.