om Hruise was an entertainment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 25-50 (LO 25-3) (Algo)
[The following information applies to the questions displayed below.]
Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to
distribute his cash and stock to his spouse, Kaffie, and the real estate to a church, The First Church of Methodology. The
remainder of Tom's assets were to be placed in trust for three children. Tom's estate consisted of the following:
Assets:
Personal assets
Cash and stock
Intangible assets (film rights)
Real estate
Liabilities:
Mortgage
Other liabilities
Problem 25-50 Part a (Algo)
$ 1,240,000
24,700,000
75,000,000
15,700,000
$116,640,000
Estate Tax Due
$ 3,900,000
4,800,000
$ 8,700,000
a. Tom made a taxable gift of $5.80 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit 25-2.)
Note: Enter your answers in dollars, not millions of dollars.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58881d36-3e53-484d-be0e-0d0221111c91%2Fc201be85-7cfc-42b3-8808-061650ec131f%2Fkozwvk_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 25-50 (LO 25-3) (Algo)
[The following information applies to the questions displayed below.]
Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to
distribute his cash and stock to his spouse, Kaffie, and the real estate to a church, The First Church of Methodology. The
remainder of Tom's assets were to be placed in trust for three children. Tom's estate consisted of the following:
Assets:
Personal assets
Cash and stock
Intangible assets (film rights)
Real estate
Liabilities:
Mortgage
Other liabilities
Problem 25-50 Part a (Algo)
$ 1,240,000
24,700,000
75,000,000
15,700,000
$116,640,000
Estate Tax Due
$ 3,900,000
4,800,000
$ 8,700,000
a. Tom made a taxable gift of $5.80 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit 25-2.)
Note: Enter your answers in dollars, not millions of dollars.
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