You and Your Spouse Wish to Give Each of Your

question 35

Multiple Choice

You and your spouse wish to give each of your three grandchildren a yearly tax-free gift from your estate. If you give each of your three grandchildren the maximum amount allowed by law, what is the total amount that you as a couple would pay out in gifts in 2011?

• A) $12,000 per year
• B) $36,000 per year
• C) $48,000 per year
• D) $78,000 per year

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Definitions:

Transactions

The financial events that affect the financial statements of a business, involving transfers or exchanges of value between two parties.

Current Ratio

An indicator of a business's capacity to meet its obligations due in the next twelve months.

Calculated

Determined by mathematical methods; involving the process of using mathematical or logical techniques to derive a result.

Measure

A method or tool used to quantify or evaluate a variable or quantity.