In 2012,Paul Transfers $1,000,000 to a Trust Benefiting His Three

question 79

Multiple Choice

In 2012,Paul transfers $1,000,000 to a trust benefiting his three children.As trustee,he has the power to determine the amount of distributions each year.Paul dies in the current year when the trust has a value of $1,200,000.How much of the trust's value is included in Paul's estate?

• A)$0
• B)$400,000
• C)$1,000,000
• D)$1,200,000

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Definitions:

Equilibrium

The state of the market when supply and demand are equal, ensuring stable prices.

Equilibrium Quantity

Equilibrium Quantity is the quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded in a market.

Increase in Supply

A situation in which the quantity of a good or service that producers are willing and able to offer for sale rises, holding all else equal.

Increase in Demand

Occurs when more of a good or service is sought by consumers at each and every price, often represented by a rightward shift of the demand curve.