Which, If Any, of the Following Statements Correctly Reflects the Rules

question 30

Multiple Choice

Which, if any, of the following statements correctly reflects the rules applicable to the alternate valuation date?

• A) The election is made by the executor.
• B) It can be elected even though no estate tax return need be filed.
• C) It can be elected only if it reduces the amount of the gross estate or reduces the estate tax liability.
• D) Its election does not affect the income tax basis of property included in the gross estate.

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Definitions:

Disposable Income

Disposable income for households after accounting for income taxes, meant for spending and saving.

Marginal Propensity

The ratio of change in an economic variable, such as consumption or saving, to a change in another variable, like income.

Disposable Income

The net income available to individuals or households after taxes have been deducted, available for spending, saving, or investing.

Consumption

The act of using goods and services by households, contributing to the overall demand in an economy.