Which of the Following Situations Requires That a Gift Tax

question 33

Multiple Choice

Which of the following situations requires that a gift tax return be filed?

• A)George gives wife, Laura, a new car for her birthday.
• B)Yanisha makes gifts of $3,000 of present interest property to each of her nieces and nephews.
• C)Archie pays the hospital medical bills for his friend Paige.
• D)Ida purchases a beach home, listing Mark as a joint tenant. Mark provides no consideration for the home.

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Definitions:

Cost Object

A product, sales territory, department, or activity to which costs are assigned, depending on the decision-making needs of management.

Unemployment Compensation

A government program that provides financial assistance to individuals who have lost their jobs through no fault of their own.

Factory Workers

Individuals employed in manufacturing facilities responsible for operating machinery, assembling products, and performing other tasks related to production.

Factory Overhead

All indirect costs related to manufacturing, excluding direct labor and direct materials, required to operate the factory.