Which of the following is a true statement?
A. A serial gift strategy works well even if the gifts don't qualify as present interests.
B. A bypass trust avoids all estate taxes on the estate of the first spouse to die.
C. The income tax savings from holding appreciated property until death are always outweighed by the additional estate tax imposed on the property.
D. A serial gift strategy utilizes inter vivos gifts to multiple donees over multiple years to maximize the annual exclusion.
E. None of the choices are true.
Answer: D
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Answer the following statements true (T) or false (F)
1. Whenever a partner mix in a partnership changes, the old partnership ceases to exist and a new partnership begins. 2. The death of a partner dissolves the partnership. 3. When a partner withdraws his or her partnership interest for cash, the liabilities in the balance sheet remain unchanged. 4. A withdrawing partner acquires a bonus if the assets they receive in the dissolution are worth more than the book value of their equity.
Use this information pertaining to the Alvino Corporation to answer the following question. 1 . The corporation's Store Supplies account showed a beginning debit balance of $200 and supplies purchased of $800 . There were $300 of supplies on hand at year end. 2 . Depreciation on a building is estimated to be $5,000. 3 . A one-year insurance policy was purchased for $2,000 . Three months have
passed since the purchase. 4 . Accrued interest on a note receivable amounted to $100. 5 . The company received a $3,600 advance payment during the year on services to be performed. By the end of the year, one-fourth of the services had been performed. The adjusting entry for depreciation on the building is a. Depreciation Expense - Building 5,000 Accumulated Depreciation - Building 5,000 b. Accumulated Depreciation - Building 5,000 Depreciation Expense - Building 5,000 c. Building 5,000 Depreciation Expense - Building 5,000 d. Accumulated Depreciation - Building 5,000 Building 5,000
Celestion should account for this lease as
a. an operating lease. b. a direct-financing lease. c. a sale-type lease. d. leveraged lease.
When a firm changed its method of accounting for inventory from LIFO to FIFO in 2014, it decided that the 2014 financial statements should be shown comparatively with the 2013 results. Which of the following statements concerning reporting the change in the retained earnings statement is correct?
a. Both the January 1 . 2013 . and January 1 . 2014, retained earnings balances are reported at different amounts to reflect the effects of the change in earnings before those respective dates. b. Only the January 1 . 2013 . retained earnings balance is reported at a different amount to reflect the effects of the change in earnings. c. Only the January 1 . 2014, retained earnings balance is reported at a different amount to reflect the effects of the change in earnings. d. No direct change to retained earnings is needed since earnings for both years have been adjusted to reflect the change.