Identify Which of the Following Statements Is True

question 106

Multiple Choice

Identify which of the following statements is true.

• A)The period for payment of estate taxes may be extended if the executor shows "reasonable cause" for not being able to pay some, or all, of the estate tax liability on the regular due date.
• B)The estate tax on interests in certain closely held businesses may be paid in installments over a 15-year period if elected.
• C)An executor may elect to postpone payment of the estate tax attributable to a remainder or reversionary interest until eight months after the interests of the other person(s)terminate.
• D)All of the above are false.

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Definitions:

In-kind Transfers

Non-cash payments or goods and services provided to individuals as part of government assistance programs, instead of cash.

Cash Payments

are transactions where the exchange of goods or services occurs via the physical exchange of currency, as opposed to credit or digital payment.

Minimum-wage Law

Rules determining the minimum legal hourly pay rate for employees by their employers.

Unskilled Labor

Workforce members who possess no specific training or skills and usually perform simple tasks.