Identify Which of the Following Statements Is True

question 4

Multiple Choice

Identify which of the following statements is true.

• A)The gift tax is a wealth transfer tax that applies to transfers during a person's lifetime and transfers at death.
• B)The gift tax is not a part of the unified transfer tax system.
• C)Under the unified transfer tax system, taxable gifts made after 1976 are included in the donor's death tax base.
• D)All of the above are false.

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Definitions:

Profits

The financial gain derived from a business activity after deducting expenses.

Rectification

The legal process of amending a document or agreement to reflect what the parties intended to agree upon.

Privity Of Contract

A principle that contract terms apply only to the actual parties to the contract

Privity Of Contract

A doctrine in contract law that states only the parties involved in the contract have the right to sue or be sued on its terms.