A Husband Transfers $90,000 by Gift Directly to His Wife

question 98

Multiple Choice

A husband transfers $90,000 by gift directly to his wife.The marital deduction for the transfer is

• A)$0 unless he elects to claim one.
• B)$90,000.
• C)$76,000.
• D)none of the above

Identify the characteristics of economic resources and differentiate between them (e.g., land, labor, capital).

Understand the notion of the time-value of money and its implications for financial decisions.

Examine the effects of changes in supply and demand on interests and rents.

Understand the concept of economic profit versus salaries and its significance in business.

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Definitions:

Long-term Note

A debt instrument that extends for a period beyond one year, representing a borrower's promise to pay back a sum of money to the lender at a specified interest rate.

Collateral

An asset or property that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.

Coupon Interest Rate

The annual interest rate paid on a bond or fixed-income security, expressed as a percentage of the face value.

Carrying Amount

Also known as book value, this represents the value of an asset as recorded in the company's books, accounting for depreciation and amortization.