Which of the Following Is a True Statement

question 71

Multiple Choice

Which of the following is a true statement?

• A) Serial gifts are limited in scope because only $10,000 can be transferred each year tax-free to any specific donee.
• B) Leaving all property to the surviving spouse maximizes the marital deduction and therefore minimizes total transfer taxes on the estates of both spouses.
• C) Serial gifts can move significant amounts of wealth only if employed by multiple donors.
• D) A bypass provision in the will of the deceased spouse is designed to use the applicable credit of the deceased spouse by transferring property to beneficiaries other than the surviving spouse.
• E) None of the choices are true.

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Definitions:

Internal Controls

Procedures and policies implemented by a company to ensure the integrity of financial and accounting information, promote accountability and prevent fraud.

Independent

Free from external control or influence; not connected or dependent on something else.

Internal Control Systems

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Financial Results

The outcomes of a company's operations and activities in terms of profit or loss, revenue, and expense over a specific period.