Which One of the Following Statements Is Not True Concerning

question 13

Multiple Choice

Which one of the following statements is not true concerning the Federal estate tax?

• A)In computing the Federal estate tax liability, all gifts made after December 31, 1976 are added to the taxable estate.
• B)The Federal estate tax is cumulatively computed on taxable gifts made during a donor's lifetime and taxable transfers made at the donor's death.
• C)A decedent is entitled to an unlimited marital deduction for the value of property passing to a surviving spouse.
• D)All gift taxes paid on post-1976 gifts are subtracted from the tentative tax on total transfers.
• E)For most purposes, a decedent's taxable estate is treated as the decedent's last gift.

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Definitions:

Shareholder Relations

The management of interactions and communications between a corporation and its shareholders.

Managerial Accounting

Identifying, measuring, evaluating, and reporting financial details to managers to assist in attaining organizational aims.

GAAP

GAAP stands for Generally Accepted Accounting Principles, which are a collection of commonly-followed accounting rules and standards for financial reporting.

Estimates

Approximations or educated guesses used in accounting to record transactions where the exact amounts cannot be determined.