Final answer:
The correct answer is d. $120,000.
Step-by-step explanation:
The question pertains to gift tax laws and how much a married couple can gift to their four children without incurring any taxable gifts or using any of their unified credit. According to the US Federal gift tax regulations, as of the knowledge cutoff date in 2023, each individual can gift an amount that falls within the annual exclusion limit to any other person without having to pay gift tax or use their lifetime unified credit. With an annual exclusion amount of $15,000 per recipient, a married couple can each give $15,000 to each child annually.
Therefore, each parent can gift $15,000 to each child, and with four children, that amounts to $60,000 per parent. Since both parents can use this exclusion for each child, together they can gift a total of $120,000 per year to their four children.