Which of the Following Is an Example of a Gift

question 7

Multiple Choice

Which of the following is an example of a gift inter vivos?

• A) Tom is promised a watch by his uncle in case he dies during an operation.
• B) Eva receives a car as a birthday gift from her father.
• C) Casey inherits a huge mansion according to his late grandfather's will.
• D) A charity home receives a huge grant from its dead benefactor's trust.

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Definitions:

Depletion Expense

An accounting approach to allocate the cost of extracting natural resources, such as minerals or timber, over the period those resources are consumed.

Straight-line Method

A method of calculating depreciation whereby an asset's cost is evenly spread over its useful life.

Salvage Value

The estimated residual value of an asset at the end of its useful life, often considered for depreciation calculations.

Useful Life

The estimated duration a fixed asset is expected to be economically usable, with normal repairs and maintenance, for it to generate revenue.