Which Statement Is Correct Concerning the Rules Governing the Application

question 121

Multiple Choice

Which statement is correct concerning the rules governing the application of § 2032A ("special use" valuation) ?

• A)The qualifying property subject to the election includes only real property.
• B)The qualifying heir of the property need not be a family member of the decedent.
• C)The election is available to the qualifying heir even if the decedent merely held the farm as an investment.
• D)In the event of recapture,the additional estate taxes are imposed on the executor of the estate.
• E)No correct answer is given above.

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Definitions:

Rate Of Inflation

The annual percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Large-company Stocks

Shares that represent ownership in large, well-established companies typically characterized by a high market capitalization.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values, often used to gauge the risk associated with a certain investment or portfolio.