All the Following Items Are Includible in the Gross Estate

question 23

Multiple Choice

All the following items are includible in the gross estate of the decedent, John Palmer, except:

• A) Gift tax paid on a gift made by John two years before his death
• B) fte proceeds of life insurance on John's life where all incidents of ownership were transferred to an irrevocable trust 18 months prior to his death
• C) fte present value of a joint and survivorship annuity purchased by John's wife, Frieda
• D) Property subject to John's testamentary general power of appointment

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Definitions:

Accumulated Depreciation

The cumulative amount of depreciation cost that has been applied to a tangible asset from the time it was initially utilized.

Legal Fees

Expenses paid or incurred for legal services, which businesses may incur in the course of operations or dispute resolution.

Equipment Account

An account on a company's balance sheet that reports the value of equipment owned by the company.

Routine Repairs

Regular maintenance activities required to maintain the functionality and efficiency of equipment or facilities.