3. In March of the current year, H transferred $200,000 to Daughter and $200,000 to Son. In July of the same year, Hs wife transferred $5,000 to Son. No other gifts were made. H and his wife elected to split the gifts on their gift tax returns. What is the amount of current-year taxable gifts made by H and Hs wife?

a.

H - $172,500, H's wife - $172,500

b.

H - $187,500, H's wife - $187,500

c.

H - $340,741, H's wife - $4,259

d.

H- $345,000, H's wife - $0

5. If an individual donor makes a gift of future interest in which the donee is to receive possession of the gift at some future time, the annual exclusion for gift tax purposes is

	a.	$0
	b.	$3,000
	c.	$5,000
	d.	$15,000

6. Ralph gave his aunt an antique clock during tax year 2019. He had purchased the clock for $16,000 in 2014. The fair market value at the date of the transfer was $22,000. What amount should be recorded on Form 709 as the value of this gift?

	a.	$16,000
	b.	$8,000
	c.	$22,000
	d.	$2,000

7. The Tom Trust requires that all trust income be distributed at least annually. There are no provisions for charitable contributions. To be treated as a simple trust, what must also be true?

	a.	Trust income can consist of interest and dividends only.
	b.	There were no distributions of corpus in the current year.
	c.	All beneficiaries must be U.S. citizens or resident aliens.
	d.	All of the answers are correct.

8. In 2019, John created a simple trust which provides that the income from the trust will be payable to his son Joey (age 16) for 12 years. At the end of the 12 years, the principal will revert back to John. Which of the following statements is false regarding this trust?

	a.	The income from the trust is taxed to Joey.
	b.	Any capital gains are taxed to John.
	c.	The income distribution deduction does not include the capital gains.
	d.	None of the answers are correct.