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:

Shift

In economics, a change in the position of a demand or supply curve which reflects a change in conditions other than price.

Adverse Supply Shock

A sudden and significant decrease in the supply of a good or service, which typically leads to an increase in prices and can temporarily boost inflation.

Short-run Phillips Curve

A graphical representation showing the inverse relationship between the level of unemployment and the rate of inflation in an economy over the short-term.

Inflation

The degree of uptick in the universal valuation of goods and services, weakening purchase potency.