Identify Which of the Following Statements Is False

question 52

Multiple Choice

Identify which of the following statements is false.

• A)The marital deduction for gift tax purposes is limited to one-half the value of the property transferred.
• B)The marital deduction is generally allowed since the transfer remains within the economic (husband/wife)unit.
• C)The marital deduction for gift tax purposes is limited to the amount of the includible gift (e.g., the amount of the gift that is in excess of the annual exclusion).
• D)Transfers of community property are eligible for the marital exclusion.

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Definitions:

Common Stock

Equity ownership in a corporation, with voting rights and the potential to receive dividends.

Cash Dividend

A payment made by a company to its shareholders, usually as a distribution of profits.

Journal Entry

A record in the books of accounts that represents a business transaction, including the accounts and amounts to be debited and credited.

Dividend Yield Ratio

A business ratio reflecting the amount a firm disburses in dividends annually compared to the price of its shares.