Which of the Following Transfers Is Subject to the Gift

question 38

Multiple Choice

Which of the following transfers is subject to the gift tax?

• A)Matilda contributes $5,000 to a Senate candidate's political organization.
• B)Frank gives $30,000 to a lobbying group promoting stricter environmental regulations.
• C)Julia establishes a trust benefiting her nieces and nephews. Julia will determine the amount of any distributions made.
• D)Lance purchases land, titling it in the names of Lance and Sheryl, joint owners.

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Definitions:

FOB Destination

Freight terms indicating that the seller places the goods free on board to the buyer’s place of business, and the seller pays the freight.

Physical Count

An inventory audit practice where a company manually counts all of its inventory at a certain point in time to verify stock levels and values.

Transit

The process or period of moving goods or people from one place to another.

FIFO Method

The First-In, First-Out method is an inventory valuation technique where the costs of the earliest goods purchased are the first to be recognized in cost of goods sold.