In Which of the Following Independent Situations Has Trent Made

question 47

Multiple Choice

In which of the following independent situations has Trent made a gift?

• A) Trent established an irrevocable trust, income payable to himself for life and, upon his death, remainder to his children.
• B) Trent dies owning a U.S. savings bond with ownership listed as: "Trent, payable to Sue on Trent's death." Sue redeems the bond.
• C) Trent sends $25,000 to Alice's oral surgeon in payment of her dental implants. Alice is Trent's sister and does not qualify as his dependent.
• D) Trent pays Eva $800,000 in a property settlement of her marital rights. One month later, Trent and Eva are divorced.

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Definitions:

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Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.

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The distribution of the financial impact of a tax between buyers and sellers in a market.