If the Proceeds of a Pension Plan Are Being Distributed

question 38

Multiple Choice

If the proceeds of a pension plan are being distributed and the original beneficiary dies:

• A)The person who inherits the plan assets can elect to be treated as the original beneficiary if that person is the spouse of the original beneficiary.
• B)The person who inherits the plan assets can elect to be treated as the original beneficiary if that person is unrelated to the original beneficiary.
• C)The person who inherits the plan assets will receive the remaining plan assets tax-free.
• D)The balance of the pension plan assets must be distributed in the year of death.

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Definitions:

Adjusted Cost of Goods Sold

This refers to the cost of goods sold figure after adjustments for any changes in inventory or other factors affecting the cost of goods produced and sold.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including labor, material, and overhead.

Adjusted Cost of Goods Sold

The cost of goods sold figure after it has been adjusted for returns, allowances, and any other adjustments.

Unadjusted Cost of Goods Sold

The initial calculation of the cost of goods sold that does not factor in any adjustments like returns or allowances.