Which one of the following most closely approximates Ruby's taxable gift for this transfer?
Which one of the following most closely approximates Ruby's taxable gift for this transfer?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
uby established an inter vivos irrevocable trust earlier this year that gave her husband, as the sole income beneficiary,a lifetime right to all income payable on an annual basis. Ruby named her children as remainder beneficiaries. She also gave her husband a general power of appointment over all trust assets during his lifetime and at his death. She funded the trust with $1,000,000 in cash and assets.
Which one of the following most closely approximates Ruby's taxable gift for this transfer?
Question 15Answer
a.
$500,000
b.
$1,000,000
c.
$0
d.
$345,800
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