The Terms of a Will Currently Undergoing Probate Are: "A

question 70

Multiple Choice

The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash; to my son James, $50,000 from my savings account; and to my Daughter Lila, all of my remaining property." At the time of death, the balance in the savings account was $40,000, and there was additional cash (after payment of funeral expenses and all claims against the estate) of $70,000.
-The gift to James is a

• A) general legacy.
• B) specific legacy.
• C) demonstrative legacy.
• D) residual legacy.
• E) devise.

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Definitions:

Annual Fixed Costs

The total fixed costs a company incurs over a year, which do not vary with the level of production or sales.

Return on Investment

A measure of the profitability and efficiency of an investment, calculated by dividing net profits by the cost of the investment.

Residual Income

Profit remaining after deducting all costs, including the cost of capital, usually used in managerial accounting as a performance measure.

Minimum Required Rate of Return

The lowest rate of return that a potential investment must offer to be considered acceptable, taking into account the investor's cost of capital and risk appetite.