Vincent Makes the Following Property Transfers in the Current Year

question 101

Multiple Choice

Vincent makes the following property transfers in the current year: • $5,000 tuition for a grandson paid directly to the school
• $1,000 medical expense for a child paid directly to a hospital
• $500 donation to the Democratic party
• $10,000 property settlement in conjunction with a divorce
• $3,000 room and board at college for a grandson paid directly to the school
Vincent's gifts for the year before considering the annual gift tax exclusion total

• A)$19,500.
• B)$19,000.
• C)$3,000.
• D)$0.

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Definitions:

Money

A medium of exchange used to facilitate transactions of goods and services.

Producer's Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received from its sale.

Supply Curve

A graph showing the relationship between the price of a good and the amount of it that suppliers are willing to produce and sell, under the assumption of other conditions being constant.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good demanded by consumers.