In 1980,Spencer Creates a Revocable Trust,income Payable to His Children

question 100

True/False

In 1980,Spencer creates a revocable trust,income payable to his children for life,remainder to his grandchildren.Thirty-two months before he dies in 2008,Spencer relinquishes the power to revoke the trust.The trust is included in Spencer's gross estate.

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Definitions:

Average Operating Assets

The average value of a company's assets used in its operating activities over a certain period.

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest, showing the profitability from regular business operations.

Average Operating Assets

The average amount of assets used during a period to generate operating income, useful in evaluating asset efficiency.

ROI

Return on Investment, a measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of the investment.