Identify Which of the Following Statements Is False

question 30

Multiple Choice

Identify which of the following statements is false.

• A)A power of appointment exists when a person transfers property and grants someone else the power to specify who eventually will receive the property.
• B)A person possesses a general power of appointment if the person has the power to appoint property to himself, his creditors, his estate, or the creditors of his estate.
• C)The donee's payment of the gift tax does not reduce the amount of the gift because it is treated as consideration paid to the donor.
• D)The donor must recognize as a gain the excess of the gift tax payable over the adjusted basis of the property.

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Definitions:

Distribution Chain

The sequence of intermediaries an product or service passes through from manufacturer to final consumer, including wholesalers, distributors, and retailers.

Jiffy Lube

An American brand of automotive oil change specialty shops that also offer a variety of maintenance services.

Buyer Requirement

The specific conditions or criteria that purchasers or markets demand from products or services.

Engine Oil

A lubricant used in internal combustion engines to reduce wear on moving parts, clean the engine from sludge, and cool the engine by carrying heat away from moving parts.