At the time of her death on September 4, Alicia held the following assets:Bonds of Emerald Tool CorporationStock in Drab CorporationInsurance policy (face amount of $1,456,000) on the lifeof her brother, MitchTraditional IRAsCash surrender value.Fair Market ValueThe amount included in Alicia's gross estate for these items is $$3,640,0004,368,000*291,2001,092,000Alicia also held a lifetime income interest in a trust (fair market value of trust assets $5,500,000) created by her late spouse Bert.(The executor of Bert's estate had made a QTIP election.) In October, Alicia's estate received an interest payment of $15,000($7,500 accrued before September 4) paid by Emerald and a cash dividend of $10,550 from Drab. The Drab dividend wasdeclared on August 19 and was payable to date of record shareholders on September 3. Although Mitch survives Alicia, she is thedesignated beneficiary of the insurance policy. The IRAs are distributed to Alicia's children.

Gross estate encompasses all substantially valuable property owned by an individual at death, and…

Answered: At the time of her death on September…

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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