1. The special use valuation method of § 2032A is available for valuing transfers by gift. a. True b.False 2. One way to dispute the existence of large goodwill is to argue that the decedent was not a key person in the operation of the business. a. True b.False 3. Under proper circumstances, a disclaimer by an heir can increase the charitable deduction allowed a decedent. a. True b.False 4. A typical state taxable income subtraction modification is the interest income earned from another state's bonds. a. True b.False

1. The special use valuation method of § 2032A is available for valuing transfers by gift. a. True b.False 2. One way to dispute the existence of large goodwill is to argue that the decedent was not a key person in the operation of the business. a. True b.False 3. Under proper circumstances, a disclaimer by an heir can increase the charitable deduction allowed a decedent. a. True b.False 4. A typical state taxable income subtraction modification is the interest income earned from another state's bonds. a. True b.False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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-If the donor is a shareholder, a revenue or gain is recognized at an amount equal to the value of the donated asset. - If the donor is a shareholder, the donation is recorded by crediting an appropriately titled additional paid in capital account. - PPE received as donation is recorded at its fair value less cost to sell at the time of donation. True or False
With respect to transaction and translation gains and losses: a. transaction gains and losses are taxable but have no immediate cash flow impact. b. transaction gains and losses have immediate cash flow and tax consequences, translation gains and losses have neither. c. transaction gains and losses have an immediate cash flow impact, but taxation is deferred until the related assets are sold. d. transaction and translation gains are taxable, but only transaction losses are tax deductible.
Statement I: If an agent acts in his name, the principal shall have a right of action against the persons with whom the agent has contracted. Statement II: Should there be a stipulation that the agent shall advance the necessary funds, he shall be bound to do so even if the principal is insolvent. Only Statement I is true. Only Statement II is true. Both statements are true. Both statements are false.
Estate planning is the process by which an individual may determine how his or her assets will be systematically transferred both before and after death to achieve certain goals. The least compelling motive of this process is to C A. B. C. D. Ensure that the owner's intentions are honored. Prevent the forced sale of important assets. Act in accordance with the public policy against excessive accumulation of wealth. Avoid taxes.
2 how May a testamentary charitable trust be more beneficial to a donor than to an inter vivid charitable transfer?
D3) discussion defining a skip person and to which type of transfers does the GSTT apply?, Define taxable distribution. When must the allocation of the GST exemption take place?, Explain the predeceased ancestor exception, What are the benefits of using a generation-skipping trust? Who pays the income tax on the income generated within a dynasty trust and why should a dynasty trust give some beneficiaries a limited power of appointment?
One of the following is not a prerequisite in order that claim against the estate maybe deductible They must be existing against the estate They must be reasonably certain as to amounts They must have been prescribed They must be enforced by the claimants
Which of the following statements is correct? A. The receipt of boot in a § 1031 like-kind exchange can result in the recognition of gain B. The receipt of boot in a § 1031 like-kind exchange cannot result in the recognition of loss C. The giving of boot in a § 1031 like-kind exchange can result in the recognition of gain D. Only A, and B E.A, B, and C Please without plagiarism please
In an agreement involving the right to acquire property, which of the following are conditions that must be met in order for the IRS to accept the purchase price set in the agreement as a valid measurement of the value of the property being acquired? The purchase price must be determined by an independent appraisal submitted with an informational gift tax return regardless of the value of the property. The agreement must be a bona fide business arrangement. The agreement cannot be an attempt to transfer the property to a family member for less than full and adequate consideration. The terms of the agreement must be comparable to those that would be entered into by persons in an arm's-length transaction A) I and III B) II and IV C) I and IV D) II, III, and IV
_______ 9. Which of the following constitute property for purposes of §351 Money Debt of Transferee evidenced by a security Debt of Transferee NOT evidenced by a security Interest accrued on b & c after the Transferor acquired the debt Only A Only A & B Only A, B, & d All of the above
What does a warranty deed warrant? (multiple answers allowed, incorrect answers will reduce correct answers) O a. no encumbrances O b. that a title search has been done O c. that there is a life estate O d. quiet enjoyment of the property O e. that nobody owns any part of the property other than the owner O f. that the partition action is finalized O g. that title insurance has been purchased O h. title