Match the description of terms in the middle column with the terms on the far right column.

Your Answer

	1. This is income earned by a decedent at the time of death but not reportable on the final income tax return because of the method of accounting that appropriately is utilized. Such income is included in the gross estate	A. Corpus
	2. Such trusts may not have a charitable beneficiary, accumulate income, or distribute corpus.	B. Crop Insurance Proceeds
	3. The measure that determines the nature and amount of the distributions from estates and trusts that the beneficiaries must include in income. It also limits the amount that estates and trusts can claim as a deduction.	C. Future Interest
	4. Suppose, for example, George transfers an apartment building into a trust, income payable to Wanda for life, remainder to Sam upon Wandas death. The apartment building is the _______ of the trust..	D. Simple Trust.
	5. An algorithm set forth in the Regulations to determine the tax year for a partnership or an S corporation with owners whose tax years differ.	E. Imputed Interest
	6. This requires an election for tax purposes.	F. Hybrid Method
	7. The maximum value of assets that can be transferred to another party without incurring any Federal gift or estate tax because of the application of the unified tax credit.	G. Qualified Terminal Interest Property
	8. Assume that Dora transfers securities to a newly created trust. Under the terms of the trust instrument, income from the securities is to be paid each year to Nan for her life, with the securities passing to Steve upon Nans death. Steve has a _____ interest..	H. Grantor
	9. Assume that Dora transfers securities to a newly created trust. Under the terms of the trust instrument, income from the securities is to be paid each year to Nan for her life, with the securities passing to Steve upon Nans death. Dora has a _____ interest.	I. Least Aggregate Deferral Method
	10. Under this procedure, the seller arrives at the gain to be recognized by computing the gross profit percentage from the sale (the gain divided by the contract price) and applying it to each payment received	J. DNI
	11. A combination of the accrual and cash methods of accounting. That is, the taxpayer may account for some items of income on the accrual method (e.g., sales and cost of goods sold) and other items (e.g., interest income) on the cash method.	K. IRD
	12 Upon Brads death, his one-half interest in the property passes to his estate or heirs, not automatically to Connie. This type of ownership is____	L. Exemption Equivalent
	13. The proceeds received when an insured crop is destroyed. Section 451(d) permits the farmer to defer reporting the income from the insurance proceeds until the tax year following the taxable year of the destruction.	M. Present Interest
	14. When the seller is required to recognize less long-term capital gain and more ordinary income (interest income), the IRS _______	N. Tenancy in Common
	15. The person or entity that transfers their property into a trust. Sometimes this person is called the settlor or donor...	O. Installment Method