Identify Which of the Following Statements Is True

question 106

Multiple Choice

Identify which of the following statements is true.

• A)The period for payment of estate taxes may be extended if the executor shows "reasonable cause" for not being able to pay some, or all, of the estate tax liability on the regular due date.
• B)The estate tax on interests in certain closely held businesses may be paid in installments over a 15-year period if elected.
• C)An executor may elect to postpone payment of the estate tax attributable to a remainder or reversionary interest until eight months after the interests of the other person(s)terminate.
• D)All of the above are false.

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Definitions:

Transfer Warranty

Guarantees made by the seller about the quality and title of goods being sold, ensuring they are free from any claims and encumbrances.

Remotely Created Checks

Checks that are created by the payee using the payer’s bank account information, without the payer’s direct signature, often used for telephone or online transactions.

Implies

Suggests or indicates something without expressing it directly.

Draws

In a financial context, it refers to a type of credit advance or salary payment made against future earnings or revenue.