Mr Lee Made the Following Transfers This Year

question 50

Multiple Choice

Mr. Lee made the following transfers this year. Which of the transfers are treated as gifts for federal tax purposes?

• A) Political contribution to the Democratic party
• B) Charitable contribution to the United Way
• C) Payment to a hospital for the medical expenses of his 39-year old son
• D) None of the above are treated as gifts.

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Definitions:

Square Feet

A measurement of area equal to a square that is one foot on each side, commonly used to measure the size of rooms or buildings.

Allocation Basis

A criterion or standard used in accounting to distribute costs among various departments, projects, or activities based on benefits received or other equitable relationship.