In preparing a company's statement of cash flows using the indirect method, the following information is available: Net income $61,000
Accounts payable increased by 18,900
Accounts receivable decreased by 25,900
Inventories increased by 6,800
Depreciation expense 32,700

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.