Which of the Following Is a True Statement

question 136

Multiple Choice

Which of the following is a true statement?

• A)Leaving all property to the surviving spouse maximizes the marital deduction and therefore minimizes total transfer taxes on the estates of both spouses.
• B)A bypass provision in the will of the deceased spouse is designed to use the applicable credit of the deceased spouse by transferring property to beneficiaries other than the surviving spouse.
• C)Serial gifts are limited in scope because only $10,000 can be transferred each year tax-free to any specific donee.
• D)Serial gifts can move significant amounts of wealth only if employed by multiple donors.
• E)None of the choices are true.

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Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.

Marginal Revenue Product

The additional revenue generated from using one more unit of an input in the production process.

Wage Rate

The amount of compensation a worker receives per unit time or per unit of output, often expressed per hour or piece.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource.