Mary, a widow, died in 2022. Her personal representative filed a federal estate tax return showing the following:
Mary, a widow, died in 2022. Her personal representative filed a federal estate tax return showing the following:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Mary, a widow, died in 2022. Her personal representative filed a federal estate tax return showing the following:
Gross estate | $4,000,000 | |
Funeral and administrative expenses | $80,000 | |
Unsecured debts due at death | $120,000 | |
Casualty losses ineligible for insurance reimbursement | $50,000 | |
Adjusted gross estate | $3,750,000 | |
Marital deduction | $100,000 | |
Charitable deduction (not cash) | $250,000 | |
State death taxes | $25,000 | |
Taxable estate | $3,375,000 | |
Adjusted taxable gifts | $325,000 | |
Tax base | $3,700,000 | |
Tentative tax | $1,425,800 | |
Applicable Credit Amount | $4,769,800 | |
Net estate tax due | $0 |
Based on this information, which one of the following amounts most closely approximates the cash requirements for Mary's estate?
A)
$250,000
B)
$600,000
C)
$275,000
D)
$80,000
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