Which of the Following Is a True Statement

question 115

Multiple Choice

Which of the following is a true statement?

• A) Executor's fees paid by an estate are deductible in computing the gross estate.
• B) Funeral expenses for the decedent paid by an estate are deductible in computing the adjusted gross estate.
• C) An executor can choose to deduct the decedent's funeral expenses on either the estate tax return or the estate's income tax return.
• D)An executor can only deduct the costs of administering the decedent's estate on the estate's income tax return.
• E)None of these

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Definitions:

Unit Price

The cost per unit of a product or service, making it easier to compare the value of similar items.

Market Price

The current market price for buying or selling an asset or service in an open exchange.

Purely Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and free entry and exit of firms.

Short Run

A period in which at least one factor of production is fixed, affecting the ability of a business to increase output in response to increased demand.