Prepare journal entries to record these transactions:
(a) sheridan company retires its delivery equipment, which cost $47,790. accumulated depreciation is also $47,790 on this delivery equipment. no salvage value is received. (b) assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,660 instead of 47,790.

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.