Match Each Statement with the Correct Choice

question 85

Multiple Choice

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
-A gift will not cause income tax consequences to the donor.

• A)Step-up in basis
• B)Step-down in basis
• C)Gift of installment notes receivable
• D)Gift of property that has potential for recapture of depreciation
• E)Donor's basis on date of gift appreciated property given, no gift tax due)
• F)The amount of the deceased spouse's taxable estate does not change
• G)Fair market value on date of gift
• H)Expected surviving spouse is in good health and 10 years younger
• I)No income tax consequences to the beneficiary
• J)Income in respect of a decedent IRD)
• K)No correct choice is given

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Definitions:

Shape Continuity

A perceptual phenomenon where the visual system prefers to see continuous shapes rather than disrupted or disconnected ones.

Apparent Motion

The perception of movement in a stationary object or scene due to relative motion between the observer and the object or due to visual illusions.

Real Motion

The actual movement of an object or person through space and time, as opposed to perceived or virtual movement.

Interposition

A visual cue used to perceive depth; occurs when one object partially covers another, indicating that the former is closer to the viewer.