Joint Costs Are

question 15

Multiple Choice

Joint costs are

• A)separable.
• B)allocated on the basis of cause and effect relationships.
• C)allocated arbitrarily.
• D)all of the above.

Understand the benefits of establishing a trust.

Recognize the significance of an ethical will in passing personal values.

Grasp the legalities and implications of making a will.

Understand the legal requirements for a valid will.

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Definitions:

Constructively Received

Income considered received by the taxpayer once it is made available to them, not necessarily when actually in hand.

Income

Financial gains obtained regularly as a result of working or investing.

Imputed Interest Rules

IRS rules that assign a market-rate interest value to certain transactions where no interest or an unrealistic amount of interest is charged.

Personal Residence

A dwelling where an individual lives for the majority of the tax year, which can include a house, apartment, trailer, or boat.