The Generation-Skipping Tax Is Designed to Accomplish Which of the Following

question 34

Multiple Choice

The generation-skipping tax is designed to accomplish which of the following?

• A)Generate additional revenues to supplement the estate tax.
• B)Prevent the avoidance of transfer taxes (both estate and gift tax)through transfers that skip a generation of recipients.
• C)Eliminate the possibility that the estate tax can be avoided by gifts in contemplation of death.
• D)Replace the gift tax on distributions from trusts.
• E)None of the choices are correct.

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Definitions:

Total Revenue

The overall amount of money generated by a business from its sales activities before any costs or expenses are subtracted.

Flight Attendants

Airline employees responsible for ensuring the safety, security, and comfort of passengers during flight.

Revenues

The entire sum of proceeds a company receives from transactions or services conducted over a specified period.

Costs

The expenses associated with the production of goods or services, including but not limited to materials, labor, and overhead.