Charlie Makes the Following Gifts in the Current Year: $40,000

question 104

Multiple Choice

Charlie makes the following gifts in the current year: $40,000 to his spouse,$30,000 to his church,$18,000 to his nephew,and $25,000 to a friend.Assuming Charlie does not elect gift splitting with his wife,his taxable gifts in the current year will be

• A)$13,000.
• B)$15,000.
• C)$25,000.
• D)$41,000.

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Definitions:

Exact Simple Interest

Interest calculated linearly on the principal amount, where the calculation is based precisely on the time period involved.

365-Day Year

A method of calculating interest that assumes all years have 365 days, used in some financial contexts.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or deposit, based solely on the principal, rate, and time.

360-Day Year

A method used in accounting and finance that assumes a year has 360 days to simplify interest calculations.