Which of the Following Is a True Statement

question 115

Multiple Choice

Which of the following is a true statement?

• A) An executor can only deduct the costs of administering the decedent's estate on the estate's income tax return.
• B) Funeral expenses for the decedent paid by an estate are deductible in computing the adjusted gross estate.
• C) An executor can choose to deduct the decedent's funeral expenses on either the estate tax return or the estate's income tax return.
• D) Executor's fees paid by an estate are deductible in computing the gross estate.
• E) None of the choices are true.

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Definitions:

Market Equilibrium

Market Equilibrium is a state in which market supply equals market demand, meaning that goods supplied at a certain price are exactly matched by the goods demanded at that price.

Excess Demand

A market situation where the quantity demanded of a product exceeds the quantity supplied at a given price, leading to shortages.

Excess Supply

The situation where the quantity of a good or service that is available exceeds the quantity demanded by consumers at the current price.

Excess Demand

A market condition where the quantity demanded of a product exceeds the quantity supplied, often resulting in upward pressure on prices.