If Death Occurs Within Three Years of a Lifetime Gift

question 34

Multiple Choice

If death occurs within three years of a lifetime gift of a life insurance policy, the insurance proceeds:

• A) Cannot be paid to the beneficiary
• B) Are never subject to estate taxes
• C) Are added back in the estate of the donor insured
• D) Must be returned to the insurance company
• E) Are paid to the surviving spouse, even if the spouse is not the named beneficiary

Understand the principle of calculating the cost of unused capacity and how it affects the costing system.

Develop an understanding of how job-order costing systems compute manufacturing overhead and apply it to jobs.

Gain insights into the preparation of income statements under a job-order costing system and the impact of cost of unused capacity.

Understand the concept of basing predetermined overhead rates on activity at capacity versus estimated activity for the year.

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Definitions:

Feelings of Failure

Emotional distress or despair stemming from the perception of having fallen short of one’s own or others' expectations.

Spouse and Parent

Roles associated with being a married partner and a caretaker of children, involving various responsibilities and emotional bonds.

Supporting a Child

Involves providing emotional, social, and financial assistance to help a young person grow and develop in a healthy manner.

Reciprocity

A social principle involving mutual exchange where actions or exchanges are met with reciprocation.