In Satisfying the More-Than-35% Test of § 6166 (I

question 108

True/False

In satisfying the more-than-35% test of § 6166 (i.e., extended estate tax payment schedule relative to an interest in a closely held business), prior gifts the decedent has made may have to be considered.

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Definitions:

Adjusting Entry

An entry made in the books at the end of an accounting period to allocate income and expenditures to the appropriate period.

Prepaid Insurance

An asset account that represents insurance payments made in advance for coverage that will be received in the future.

Office Supplies Account

An account used to track expenses related to materials and supplies used in an office environment.

Adjusting Entry

At the closure of an accounting period, entries are documented to attribute earnings and outlays to the span during which they genuinely happened.