Statement 1: When a transaction is partly onerous and partly gratuitous, it is a complex transaction because it normally involves a transfer for less than full and adequate consideration. Statement 2: A transaction is said to be complex because it is subject to both income tax and transfer tax (estate or donor’s tax). *         a. Both statements are true       b. Both statements are false       c. Only statement 1 is true       d. Only statement 2 is true

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Statement 1: When a transaction is partly onerous and partly gratuitous, it is a complex transaction because it normally involves a transfer for less than full and adequate consideration. Statement 2: A transaction is said to be complex because it is subject to both income tax and transfer tax (estate or donor’s tax). *
 
 
 
 
a. Both statements are true
 
 
 
b. Both statements are false
 
 
 
c. Only statement 1 is true
 
 
 
d. Only statement 2 is true
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