Match Each Statement with the Correct Choice

question 45

Multiple Choice

Match each statement with the correct choice. Some choices may be used more than once or not at all.
-QTIP election

• A)In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother.
• B)Death does not defeat an owner's interest in property.
• C)Exists only if husband and wife are involved.
• D)A type of state tax on transfers by death.
• E)Must decrease the amount of the gross estate.
• F)Annual exclusion not allowed.
• G)Cumulative in effect.
• H)Right of survivorship present as to type of ownership.
• I)Overrides the terminable interest rule of the marital deduction.
• J)Exemption equivalent.
• K)Bypass amount.
• L)No correct match provided.

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Definitions:

Patent

A legal document granted by the government giving an inventor exclusive rights to make, use, and sell an invention for a certain number of years.

Office Supplies

Items used in an office on a regular basis, such as paper, pens, and envelopes, which are consumed in use and need regular replenishment.

Temporary Accounts

Accounts used to record transactions within a specific accounting period, which are then closed and transferred to permanent accounts at the end of the period to prepare the company's financial statements.

Retained Earnings

The portion of net profits not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.