1. Inf. That is good, and it wins the prize! (Assuming that the prize is a cake.) "What a performance!" cheered John. "That takes the cake!" Sue: Wow! That takes the cake! What a dive! Rachel: She sure can dive!

2. Inf. That is too much; That does it! Bob: What a dumb thing to do, Fred! Erik: Yeah, Fred. That takes the cake! Bob: Wow! That takes the cake! Bill: What is it? Bob: That stupid driver in front of me just hit the car on the left and then swung over and hit the car on the right.