Which of the Following Is a True Statement

question 60

Multiple Choice

Which of the following is a true statement?

• A) Leaving all property to the surviving spouse maximizes the marital deduction and therefore minimizes total transfer taxes on the estates of both spouses.
• B) A bypass provision in the will of the deceased spouse is designed to use the unified credit of the deceased spouse by transferring property to beneficiaries other than the surviving spouse.
• C) Serial gifts are limited in scope because only $10,000 can be transferred each year tax-free to any specific donee.
• D)Serial gifts can move significant amounts of wealth only if employed by multiple donors.
• E)None of these

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Definitions:

Equity

The value of an ownership interest in property, including shareholders' ownership in a corporation.

EPS

Earnings Per Share, a financial ratio that measures the amount of net income earned per share of stock outstanding.

Operating Leverage

A measure of how much a company can increase its operating income by increasing revenue, indicating the ratio of fixed costs to variable costs.

EBIT

Earnings Before Interest and Taxes; a measure of a company's profitability that focuses on earnings generated from its core operations before the impact of financial and tax activities.