A Unified Credit Is Subtracted in Calculating Both the Gift

question 41

Multiple Choice

A unified credit is subtracted in calculating both the gift tax and the estate tax. Why doesn't this calculation have the effect of increasing the total unified credit amount?

• A) The tentative estate tax is reduced by only taxes payable on adjusted taxable gifts rather than gross gift taxes.
• B) The unified credit only offsets the exemption equivalent.
• C) The unified credit cannot be used to offset gift taxes on adjusted taxable gifts.
• D)The unified credit varies in amount from year to year.
• E)None of these

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Definitions:

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light images into neural signals sent to the brain.

Optic Disk

Area of the retina where the optic nerve exits the retina; lacks photoreceptors and so causes a blind spot.

Optic Pit

A small depression in the optic disc where nerve fibers exit the eye, contributing to the blind spot.

Sensory Stimulus

A detectable change in the internal or external environment that elicits a response from the sensory system.