1. The saving component of financial planning focuses on long-term security and includes:
A- A realistic budget for your current financial situation
B- Minimizing transportation expenses through careful planning
C- A regular savings plan for emergencies
D- A current will
E- Bankruptcy counseling
2. Descendant, an attorney using the cash method of accounting, who has a $100,000 account receivable for services, dies. Who is taxed on the income, when are they taxed, and what is the character of their gain in the following circumstances
a) The receivable is collected by Decedent’s estate.
b) The receivable is transferred by decedent’s estate to creditor to satisfy the state’s debt to creditor
c) The receivable is distributed to decedent’s child by the estate and is collected child
d) Same as (c) , above, except that prior to the collection of the receivable, Child dies and the receivable is collected by child’s estate