Which of the Following Statements Is (Are)true for Both Gratuitous

question 3

Multiple Choice

Which of the following statements is (are) true for both gratuitous and testamentary transfers?

• A)An applicable credit of up to $15,000 per donee per year reduces the tax on any transfer.
• B)An annual exclusion offsets any transfer up to $15,000.
• C)An election can be made to split a transfer between spouses.
• D)A charitable and a marital deduction are allowed in computing the taxable transfer.
• E)All of the choices are true.

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Definitions:

Wage Rate

A set amount of money given by an employer to an employee for services rendered, usually specified on an hourly or annual basis.

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a product so standard that no one controls the market price.

Imperfectly Competitive

A market structure characterized by a few dominant firms that have control over prices and high barriers to entry, limiting perfect competition.

Marginal Product

The increase in output that results from a one-unit increase in the quantity of a single input, keeping all other inputs constant.