Andrew and Brianna Are Married and Live in Texas,a Community

question 50

Multiple Choice

Andrew and Brianna are married and live in Texas,a community property state.For their birthdays this year Andrew gave cash gifts of $20,000 to each of his two daughters,and Brianna gave $30,000 to her niece.What is the amount of Andrew's taxable gifts?

• A) $1,000.
• B) $14,000.
• C) $28,000.
• D) zero if Andrew and Brianna elect to split gifts.
• E) None of the choices are correct.

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Definitions:

Investments In Associates

Investments in other companies where the investor has significant influence but does not control or jointly control the company.

Current Assets

These are assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Debt Securities

Financial instruments representing money borrowed that must be repaid, including bonds, notes, and bills.

Equity Securities

Equity securities are financial assets representing ownership interest in a company, such as stocks, and can generate income through dividends or capital gains.