At the time of Mateo's death, he was involved in the transactions described below:Mateo was a participant in his employer's contributory qualified pension plan. The plan balance of $2,000,000 is paid to Olivia, Mateo's daughter and beneficiary. The distribution consists of the following:Employer contributions$900,000Mateo's after-tax contributions600,000Income earned and accumulated by the plan500,000Mateo was covered by his employer's group term life insurance plan for employees. The $200,000 proceeds are paid to Olivia, as designated beneficiary.a. What is the total amount (of the items above) that is included in Mateo's gross estate?b. What is the total amount (of the items above) that is included in Mateo's gross estate if Olivia were Mateo's surviving spouse rather than his daughter?The amount included would be _____ and a marital deduction of _____ would be allowed.

Gross estate refers to all of the assets used to calculate whether an estate is subject to federal…

Answered: At the time of Mateo's death, he was…

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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At the time of Mateo's death, he was involved in the transactions described below:

Mateo was a participant in his employer's contributory qualified pension plan. The plan balance of $2,000,000 is paid to Olivia, Mateo's daughter and beneficiary. The distribution consists of the following:

Employer contributions $900,000

Mateo's after-tax contributions 600,000

Income earned and accumulated by the plan 500,000
Mateo was covered by his employer's group term life insurance plan for employees. The $200,000 proceeds are paid to Olivia, as designated beneficiary.

a. What is the total amount (of the items above) that is included in Mateo's gross estate?

b. What is the total amount (of the items above) that is included in Mateo's gross estate if Olivia were Mateo's surviving spouse rather than his daughter?

The amount included would be _____ and a marital deduction of _____ would be allowed.

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