Which of the Following Is a True Statement

question 21

Multiple Choice

Which of the following is a true statement?

• A) A serial gift strategy utilizes intervivos gifts to multiple donees over multiple years to maximize the annual exclusion.
• B) A serial gift strategy works well even if the gifts don't qualify as present interests.
• C) A bypass trust avoids all estate taxes on the estate of the first spouse to die.
• D) The income tax savings from holding appreciated property until death is always outweighed by the additional estate tax imposed on the property.
• E) None of the choices are true.

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Definitions:

Statement of Income

A financial statement that reports a company's financial performance over a specific period, showing income, expenses, and net profit or loss.

Allowance for Doubtful Accounts

An estimation of the accounts receivable that may not be collected due to customer defaults.

Statement of Financial Position

The statement of financial position, often called a balance sheet, is a financial report that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Current Liabilities

Obligations or debts that a company must pay within a year.