Which of the Following Statements Is True Concerning Federal Income

question 19

Multiple Choice

Which of the following statements is true concerning federal income tax laws and estates?

• A)Estates are subject to estate taxes and, therefore, exempt from income tax.
• B)The income tax on the earnings from an estate is levied only on the beneficiary.
• C)The income tax on the earnings from an estate is levied only on the estate.
• D)The income tax on the earnings from an estate is levied either on the estate, if accumulated, or the beneficiary.

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Definitions:

Special Precautions

Additional safety measures or steps taken in specific situations to prevent harm or mitigate risk beyond what is normally required.

Direct Liability

Direct liability refers to a legal responsibility that arises from one's own actions or failures to act, leading directly to harm or damage.

Respondeat Superior

A judicial principle that assigns legal liability to an employer or principal for the wrongful actions performed by an employee or agent, providing these actions happened in the course of their employment or representation.

Vicarious Liability

A legal principle where one party is held responsible for the actions or omissions of another, such as an employer for the actions of an employee.