Match Each Statement with the Correct Choice

question 120

Multiple Choice

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
-Reasonable cause will justify election.

• A)Revocable trusts
• B)Income in respect of a decedent (IRD)
• C)Conservation easement
• D)Discretionary extension of time to pay estate tax (§ 6161)
• E)Estate freeze-corporations
• F)Extension of time involving interest in closely held business (§ 6166)
• G)Special use valuation as to certain realty (§ 2032A)
• H)Depreciation recapture potential eliminated
• I)Alternate valuation date (§ 2032)
• J)Election to split gifts (§ 2513)
• K)No correct choice is given

---

Definitions:

Unit Contribution Margin

The amount each unit sold contributes to covering fixed costs and generating profit, calculated by subtracting variable costs per unit from the selling price per unit.

Break-Even Point

The financial point at which total revenues equal total costs and expenses, resulting in no net loss or gain.

Fixed Costs

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in revenue, indicating the degree to which fixed costs are utilized.