Exercise 18-20 (Algorithmic) (LO. 3) Included in Mary's gross estate are the following assets. Fair Market Value Date of Death Six Months Later Stock in Orange Corporation $13,840,000 $14,532,000 Stock in Crimson Corporation 20,760,000 16,608,000 If an amount is zero, enter "0". a. How much is Iindluded in her gross estate if the alternate valuation date is elected? Because the 5 2032 election be made, the amount to include is t b. Suppose all of Mary's assets pas to her surviving spouse. How much is included in her gross estate if the alternate valuation date is elected? Because the 5 2032 election be made, the amount to include is C. Express vour answer in part (a) as a Microsoft Excel formula.

Exercise 18-20 (Algorithmic) (LO. 3) Included in Mary's gross estate are the following assets. Fair Market Value Date of Death Six Months Later Stock in Orange Corporation $13,840,000 $14,532,000 Stock in Crimson Corporation 20,760,000 16,608,000 If an amount is zero, enter "0". a. How much is Iindluded in her gross estate if the alternate valuation date is elected? Because the 5 2032 election be made, the amount to include is t b. Suppose all of Mary's assets pas to her surviving spouse. How much is included in her gross estate if the alternate valuation date is elected? Because the 5 2032 election be made, the amount to include is C. Express vour answer in part (a) as a Microsoft Excel formula.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter18: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 6DQ

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L 16
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Question Content AreaSimon sold investment property 2 years ago for $750. Simon's basis in the property was $200. Simon is receiving $150 per year from the buyer. Simon reports this income on the installment method. If Simon collects $150 in principal during the current year, how much gain should he report from the sale for the year? a.$0 b.$110 c.$75 d.$90 e.None of these choices are correct.
N2 Linton transferred his fixed annuity to his sister for $1. He had paid $25,000 into the contract and at the time of the transfer, the annuity's surrender value had grown to $40,000. How much, if any, of this transfer is taxable to Linton? a. $0 b. $1 c. $15,000 d. $40,000
Ashvin
9 Roberta transfers property with a tax basis of $495 and a fair market value of $546 to a corporation in exchange for stock with a fair marl corporation assumed a liability of $190 on the property transferred. What is the amount realized by Roberta in the exchange? 36:42 TRENEMEN SHEMAL THE TRUT Multiple Choice $273 $356 $495 $546
Subject: acounting
Exercise 14-22 (LO. 3) Juliana purchased land three years ago for $50,000. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $70,000. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $63,000. a. Tom's basis in the land is $ and he has a realized of $ on the sale. b. Assume, instead, that the land has a fair market value of $45,000 on the date of the gift, and that Tom sold the land for $43,000. Tom's basis in the land is $ and he has a realized of $ on the sale.
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Exercise 6-26 (Algorithmic) (LO. 2) Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays $21,400 rent on April 1, 2022, for the 12 months ending March 31, 2023. Do not round any division. a. How much is Shanna's deduction for rent expense in 2022? 21,800 X b. Assume the same facts, except that the $21,400 is for 24 months' rent ending March 31, 2024. How much is Shanna's deduction for rent expense in 20227 8,175 X Feedback Check My Work A taxpayer's accounting method is a major factor in determining taxable income. The method used determines when an item is includible in income and when an item is deductible on the tax return.
64.LO.10 Helen Derby borrowed $150,000 to acquire a parcel of land to be held for investment purposes. During the current year, she reported AGI of $90,000 and paid interest of $12,000 on the loan. Other items related to Helen’s investments include the following: Interest and annuity income$11,000 Long-term capital gain on sale of stock3,500 Real estate tax on the investment land800 a.Determine Helen’s investment interest deduction for the current year. b.Discuss the treatment of the portion of Helen’s investment interest that is disallowed for the current year. c.Complete Helen’s Form 4952 for the current year. For this purpose, assume that she chooses not to include the long-term capital gain as investment income. Her Social Security number is 123-45-6789.
Sally owns real property for which the annual property taxes are $9,000. She sells the property to Kate on March 9, 2021, for $550,000. Kate pays the real property taxes for the entire year on October 1, 2021. Assume a 365-day year. Round any division to four decimal places. Round your final answers to the nearest dollar. a. How much of the property taxes can be deducted by Sally and how much by Kate? Sally can deduct $ 1,500 X and Kate can deduct $ 7,500 X of the property taxes. Feedback b. What effect does the property tax apportionment have on Kate's adjusted basis in the property? Kate's adjusted basis for the property is increased V by the $ 1,500 X she paid that is apportioned to Sally. Feedback c. What effect does the apportionment have on Sally's amount realized from the sale?