An Applicable Credit Is Subtracted in Calculating Both the Gift

question 108

Multiple Choice

An applicable credit is subtracted in calculating both the gift tax and the estate tax. Why doesn't this calculation have the effect of increasing the total applicable credit amount?

• A)The tentative estate tax is reduced by only taxes payable on adjusted taxable gifts rather than gross gift taxes.
• B)The applicable credit only offsets the exemption equivalent.
• C)The applicable credit cannot be used to offset gift taxes on adjusted taxable gifts.
• D)The applicable credit varies in amount from year to year.
• E)None of the choices are correct.

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Definitions:

Spontaneous Recovery

The reappearance of a conditioned response after a period of apparent extinction, without further conditioning.

Variable-Ratio Reinforcement Schedule

A reinforcement schedule in which the number of responses required for a reward varies, leading to high and consistent rates of response.

Fixed-Interval Reinforcement

A reinforcement schedule in which rewards are delivered at consistent, predetermined intervals of time, promoting a pattern of behavior.

Tantrums

Explosive emotional outbursts, often characterized by yelling, crying, and anger, typically seen in children but can occur at any age.