The estate of Nancy Hanks reports the following information: Value of estate assets .. . . . $8,400,000Conveyed to spouse . .. . . . . 700,000Conveyed to children . . . . . . . 100,000Conveyed to charities . . . . . . 420,000Funeral expenses . . . . . . . . . . . 50,000Administrative expenses . . . . . 20,000Debts . . . . . . . . . . . . . . . . . . . . 110,000 What is the taxable estate value? Choose the correct. a. $7,070,000. b. $7,100,000.c. $7,180,000.d. $7,420,000.

The estate of Nancy Hanks reports the following information: Value of estate assets .. . . . $8,400,000Conveyed to spouse . .. . . . . 700,000Conveyed to children . . . . . . . 100,000Conveyed to charities . . . . . . 420,000Funeral expenses . . . . . . . . . . . 50,000Administrative expenses . . . . . 20,000Debts . . . . . . . . . . . . . . . . . . . . 110,000 What is the taxable estate value? Choose the correct. a. $7,070,000. b. $7,100,000.c. $7,180,000.d. $7,420,000.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter27: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 8BCRQ

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Zac Peterson’s estate reports the following information: Value of estate assets . . . . $2,300,000Conveyed to spouse .. . . . .. . 1,000,000Conveyed to children . . . . . . . 230,000Conveyed to trust fund for benefit of cousin . . . . . . . . . . . 500,000Conveyed to charities . . . . . .. 260,000Funeral expenses . . . . . . . . . . . 23,000Administrative expenses . . . . . 41,000Debts . . . . . . . . . . . . . . . . . . .. 246,000 What is the taxable estate value?
An estate has the following income: Rental income . . . . . . . . . . . . . $5,000Interest income . .. . . . . . . . . . . . 3,000Dividend income . . . . . . . . . . . . . 1,000 The interest income was immediately conveyed to the appropriate beneficiary. The dividends were given to charity as per the decedent’s will. What is the taxable income of the estate? Choose the correct.a. $4,400b. $5,000c. $8,000d. $8,400
Mr. Masigasig created a trust in favor of Pedro. A large sum entrusted to BDO (Trustee), the income of which is accumulated Pedro. The following data were provided: Gross income of the trust .................................................................P3,000,000 Deductible business expenses of the trust .....................................1,800,000 Income distributed to Pedro during the year .....................................200,000 Dividend income from domestic corporation..................................... 100,000 Dividend income from resident foreign corporation ........................100,000 Interest income from U.S. $ deposits ..................................................200,000 Interest income from peso deposits ..................................................100,000 Personal Income and Expenses of Pedro Compensation income .....................................800,000 Rental income (net) .........................................475,000 Rental expenses…
An estate has the following income: $5,000 3,000 1,000 Rental income Interest income Dividend income The interest income was immediately conveyed to the appropriate beneficiary. The dividends were given to charity as per the decedent's will. What is the taxable income of the estate? Multiple Choice $5,000. $4.400. $8,000. $8,400.
An estate has the following income: The interest income was immediately conveyed to the appropriate beneficiary. The dividends were given to charity as per the decedent’s will. What is the taxable income of the estate? $4,400 $5,000 $8,000 $8,400
The estate of Nancy Hanks reports the following information: What is the taxable estate value? $7,070,000. $7,100,000. $7,180,000. $7,420,000.
Eleanor Matsun died on June 1 of the current year, leaving a valid will with JamesMadison being named as her personal representative. All of the following occurred in the year of her death:a. The personal representative prepared the following inventory of assets at fair market value as of the date of death:Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 31,0001,000 Shares of Pal Corporation common stock at $60 per share . . . . . . . . . . . 60,0002,000 Shares of BVD Corporation common stock . . . . . . . . . . . . . . . . . . . . . . . 40,000Rapid Transit Corporation (RTC) 8% bonds, interest payable April 1 andOctober 1, $30,000 face value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,300Time share condominium unit at Lake Tahoe . . . . . . . . . . . . . . . . . . . . . . . . . . 25,00050% Interest inMatsun Limo Service, a partnership . . . . . . . . . . . . . . . . . . . . .…
Which of the following is a specific legacy? The gift of all remaining estate property to a charity. The gift of $44,000 cash from a specified source. The gift of $44,000 cash. The gift of 1,000 shares of stock in IBM.
Which of the following is a specific legacy? Choose the correct.a. The gift of all remaining estate property to a charity.b. The gift of $44,000 cash from a specified source.c. The gift of $44,000 cash.d. The gift of 1,000 shares of stock in IBM.
At the time of Robert Granger’s death, his estate consisted of the following assets and liabilities measured at fair market value:AssetsCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000Personal residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000Automobile and sailboat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000Investment in mutual funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,280,000Collection of antique duck decoys. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,000Death benefit of life insurance policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000Farmland in Ozaukee County . . . . . . . . . . . . . . . .…
27. G transferred $20,000,000 to Trust T. Trust T was an irrevocable trust which provided for income to individual I (G's friend) for 10 years, and the remainder to a qualified charity ("QC"). Assume the present value of the income interest was $5,000,000 at the time of the transfer, and the value of the trust (remainder interest) that eventually passed to I was $17,000,000. What is the amount of G's taxable gift? a. $0b. $3,000,000c. $5,000,000d. $20,000,000e. None of a-d is correct
Use Worksheet 15.1. When Jackson Holmes died in 2018, he left an estate valued at $8,300,000. His trust directed distribution as follows: $22,000 to the local hospital, $160,000 to his alma mater, and the remainder to his three adult children. Death-related costs were $17,000 for funeral expenses, $45,000 paid to attorneys, $3,000 paid to accountants, and $35,000 paid to the trustee of his living trust. In addition, there were debts of $135,000. Use Worksheet 15.1 and Exhibit 15.5 and Exhibit 15.6 to calculate the federal estate tax due on Jackson's estate. Round your answer to nearest whole dollar. $