Laura purchased an internet-ready TV from Best Buy, which was available to take home immediately. Also involved in the contract was the right to return the TV if it was found to be defective, a manufacturer’s warranty of one year, an extended warranty of 3 additional years sold by Best Buy, and a one-year subscription to Best Buy’s TV-compatible apps. How many performance obligations does Best Buy have related to Laura’s purchase?

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.