Griffin's goat farm, inc., has sales of $680,000, costs of $342,000, depreciation expense of $86,000, interest expense of $53,000, a tax rate of 23 percent, and paid out $40,000 in cash dividends. what is the addition to retained earnings? (do not round intermediate calculations.)

Which of the following is true concerning the 5/5 lapse rule? a) the 5/5 lapse rule deems that a taxable gift has been made where a power to withdraw in excess of $5,000 or five percent of the trust assets is lapsed by the powerholder. b) the 5/5 lapse rule only comes into play with a single beneficiary trust. c) amounts that lapse under the 5/5 lapse rule qualify for the annual exclusion. d) gifts over the 5/5 lapse rule do not have to be disclosed on a gift tax return.