Jones is seriously ill and has $3.60 million of property that he wants to leave to his four children, Jones is considering making a current gift of the property (rather than leaving the property to pass through a will). Assume all of his exemption equivalent was used and any taxable transfers will be subject to the highest transfer tax rate. (Refer to Exhibit 25-1 and Exhibit 25-2) a-1. Determine how much gift tax Jones will owe if the transfers are made now a-2. if Jones makes a current gift, how much estate tax will be saved if Jones dies after three years, during which time the property appreciates to $4.8 million? Note: For all requirements, enter your answers in dollars and not in millions of dollars. -1 Amount of gift tax -2 Amount of estate tax savings
Jones is seriously ill and has $3.60 million of property that he wants to leave to his four children, Jones is considering making a current gift of the property (rather than leaving the property to pass through a will). Assume all of his exemption equivalent was used and any taxable transfers will be subject to the highest transfer tax rate. (Refer to Exhibit 25-1 and Exhibit 25-2) a-1. Determine how much gift tax Jones will owe if the transfers are made now a-2. if Jones makes a current gift, how much estate tax will be saved if Jones dies after three years, during which time the property appreciates to $4.8 million? Note: For all requirements, enter your answers in dollars and not in millions of dollars. -1 Amount of gift tax -2 Amount of estate tax savings
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject : Accounting
![Jones is seriously ill and has $3.60 million of property that he wants to leave to his four children. Jones is considering making a current
gift of the property (rather than leaving the property to pass through a will). Assume all of his exemption equivalent was used and any
taxable transfers will be subject to the highest transfer tax rate. (Refer to Exhibit 25-1 and Exhibit 25-2.)
a-1. Determine how much gift tax Jones will owe if the transfers are made now.
a-2. If Jones makes a current gift, how much estate tax will be saved if Jones dies after three years, during which time the property
appreciates to $4.8 million?
Note: For all requirements, enter your answers in dollars and not in millions of dollars.
a-1 Amount of gift tax
a-2 Amount of estate tax savings](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc66754-dc05-453a-a4c8-c79196bcb5d1%2F1b09e7dc-533d-4af8-9875-59101e3a0248%2Foe36y3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jones is seriously ill and has $3.60 million of property that he wants to leave to his four children. Jones is considering making a current
gift of the property (rather than leaving the property to pass through a will). Assume all of his exemption equivalent was used and any
taxable transfers will be subject to the highest transfer tax rate. (Refer to Exhibit 25-1 and Exhibit 25-2.)
a-1. Determine how much gift tax Jones will owe if the transfers are made now.
a-2. If Jones makes a current gift, how much estate tax will be saved if Jones dies after three years, during which time the property
appreciates to $4.8 million?
Note: For all requirements, enter your answers in dollars and not in millions of dollars.
a-1 Amount of gift tax
a-2 Amount of estate tax savings
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