Problem 18-35 (LO. 5)Using property she inherited, Lei makes a 2022 gift of $16,200,000 to her adult daughter, Doris. Neither Lei nor her spouse, Greg, havemade any prior taxable gifts.Assuming that a flat 40% tax rate applies, determine the Federal gift tax liability if (a) the election to split gifts is not made and (b) theelection to split gifts is made. (c) What are the tax savings from making the election?The unified transfer tax exclusion amount for 2022 is $12,060,000.If an amount is zero, enter "0".a. If the election to split gifts is not made, the taxable gift is $b. If the election to split gifts is made, then the taxable gift from Lei is $due from Lei is $and from Greg is $c. The tax savings from making the election is $and gift tax due on the gift is $and from Greg is $. Gift tax

A gift tax is a levy imposed on the transfer of assets or money from one person to another above a…

Answered: a. If the election to split gifts is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Select one of choices (estate tax, inheritance tax, and gift tax) for the blank. ( ) is a tax on the right to receive property from a decedent. ( ) is a tax levied on the right to transfer property during a taxpayer’s lifetime. ( ) is a tax that imposed on the right to pass property at death. ( ) is imposed on transfers made during the owner’s life time. ( ) is imposed on the transferor at death. ( ) is imposed on the recipient.
Hh.
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Please answer if true or False

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a. If the election to split gifts is not made, the taxable gift is $ b. If the election to split gifts is made, then the taxable gift from Lei is $ due from Lei is $ and from Greg is $ c. The tax savings from making the election is $ and gift tax due on the gift is $ and from Greg is $ . Gift tax