Which of the Following Is a True Statement

question 21

Multiple Choice

Which of the following is a true statement?

• A) A serial gift strategy utilizes intervivos gifts to multiple donees over multiple years to maximize the annual exclusion.
• B) A serial gift strategy works well even if the gifts don't qualify as present interests.
• C) A bypass trust avoids all estate taxes on the estate of the first spouse to die.
• D) The income tax savings from holding appreciated property until death is always outweighed by the additional estate tax imposed on the property.
• E) None of the choices are true.

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Definitions:

Return On Stockholders' Equity

A financial ratio that measures a company's ability to generate profits from its shareholders' equity.

Return On Common Stockholders' Equity

A measure of financial performance that indicates how much net income a company generates with the money shareholders have invested.

Earnings Per Share

A financial measure that calculates the portion of a company’s profit allocated to each outstanding share of common stock, indicating profitability.

Discontinued Operations

Components of a business that have been sold or discontinued, reported separately from continuing operations in financial statements.