Match Each Statement with the Correct Choice

question 85

Multiple Choice

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
-A gift will not cause income tax consequences to the donor.

• A)Step-up in basis
• B)Step-down in basis
• C)Gift of installment notes receivable
• D)Gift of property that has potential for recapture of depreciation
• E)Donor's basis on date of gift appreciated property given, no gift tax due)
• F)The amount of the deceased spouse's taxable estate does not change
• G)Fair market value on date of gift
• H)Expected surviving spouse is in good health and 10 years younger
• I)No income tax consequences to the beneficiary
• J)Income in respect of a decedent IRD)
• K)No correct choice is given

---

Definitions:

Inflammation

A biological response to injury or infection, marked by heat, redness, swelling, and pain in the affected tissues.

Fluid-Filled Sac

A pouch within the body encased by a thin membrane containing liquid; it can occur in various tissues and organs.

Tendons

Fibrous connective tissues that attach muscles to bones, transmitting the force from muscle contraction to move the bone or structure.

Articular Cartilage

A smooth, white tissue that covers the ends of bones where they come together to form joints, helping reduce friction and absorb shock.