David Davis died in 2019 and left an estate valued at $13,900,000 after the payment of his debts. His will gave $45,000 to the Humane Society, $102,000 to the University of Missouri, $154,000 to the Boy Scouts of America, and the remainder to his sister Mindy. The expenses of settling the estate were $10,000 for the funeral, $5,000 to his brother as executor, and $3,000 to accountants and lawyers. (a) Your answer is correct. Calculate David's gross estate. 2$ 13900000 eTextbook and Media Attempts: 1 of 3 used (b) Calculate David's adjusted gross estate. $

David Davis died in 2019 and left an estate valued at $13,900,000 after the payment of his debts. His will gave $45,000 to the Humane Society, $102,000 to the University of Missouri, $154,000 to the Boy Scouts of America, and the remainder to his sister Mindy. The expenses of settling the estate were $10,000 for the funeral, $5,000 to his brother as executor, and $3,000 to accountants and lawyers. (a) Your answer is correct. Calculate David's gross estate. 2$ 13900000 eTextbook and Media Attempts: 1 of 3 used (b) Calculate David's adjusted gross estate. $

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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In 2019, Al gave his son a Mercedes worth $115,000 and his daughter a Lexus worth $85,000. He also gave his wife Arlene a rare painting that he purchased for $135,000. Al paid gift tax of $25,000 on the gifts he gave in 2019. In 2020, Al gifted $100,000 to his son and $100,000 to his daughter. Arlene paid their daughter’s tuition of $24,000 directly to the university. Al and Arlene created a revocable trust with the children as remainder beneficiaries and funded it with $400,000. No other gifts were made during 2020. Al and Arlene elected to split the gifts on their 2019 and 2020 gift tax returns. What is the amount of taxable gifts made by Al and Arlene, respectively, in 2020? Al Arlene $72,500 $70,000 Al Arlene $450,000 $250,000 Al Arlene $185,000 $24,000 Al Arlene $70,000 $70,000
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