Absorption costing, which is also known as full absorption costing or full costing, is a method for accumulating fixed and variable costs associated with the production process and apportioning them to individual products.Thus, a product must absorb a broad range of costs.The key costs assigned to products are:bsorption costing, which is also known as full absorption costing or full costing, is a method for accumulating fixed and variable costs associated with the production process and apportioning them to individual products. Thus, a product must absorb a broad range of costs. The key costs assigned to products are:
The Annual Gift Tax Exclusion. The annual gift tax exclusion was indexed for inflation as part of the Tax Relief Act of 1997, so the amount increased in subsequent years to keep pace with the economy. Below is a chart that shows the increases in the annual exclusion from 1997 through 2015.
The annual gift tax exclusion for 2015 is $14,000. Subtracting that amount from the $50,000 gift value leaves a $36,000 taxable value. George would then subtract the $36,000 value from his lifetime gift tax exemption of $5,340,000, leaving a lifetime exemption of $5,304,000.early any gift is considered a taxable gift, but gift tax applies only if the value of the gifts does not exceed the annual gift tax exclusion amount as set by the IRS. In 2015, the amount of this exclusion is $14,000 per recipient.