A Split-Interest Gift Transfer

question 76

Multiple Choice

A split-interest gift transfer

• A)involves two public (charitable)organizations.
• B)involves two present interests.
• C)qualifies for a charitable contribution deduction if the recipient charity receives a guaranteed annuity, which is a present interest.
• D)cannot qualify for a deduction if a future interest is given to a charitable organization.

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Definitions:

Debt Ratio

A ratio indicating a company's level of indebtedness by dividing its total liabilities by its total assets.

Financial Leverage

The use of borrowed funds to increase the potential return of an investment.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the company's leverage level.

Total Assets

The combined value of a company's immediate and long-term assets.