Prior to her death in 2022, Elfrieda made lifetime taxable gifts of $34,000. At her death, she was survived by her husband and daughter and owned the following property interests. Sole ownership: Life insurance on her husband's life with a death benefit of $500,000 and a replacement cost of $120,000, with her children as the beneficiaries A portfolio of stocks, bonds, and CDs valued at $8,000,000 Personal residence with a fair market value of $500,000 Joint ownership: With her husband: household furnishings, personal property, bank accounts, and automobiles worth a total of $800,000 With her daughter: a vacation condo valued at $400,000 for which her executor has records showing a 20% contribution by her daughter Her will bequeaths the personal residence outright to her husband with the rest and remainder of her estate to her daughter. She had debts of $6,000 and administrative costs of $24,000. Which one of the following amounts, if any, most closely approximates Elfrieda's estate tax liability? Use the Unified Federal Estate and Gift Tax Rates table
Prior to her death in 2022, Elfrieda made lifetime taxable gifts of $34,000. At her death, she was survived by her husband and daughter and owned the following property interests. Sole ownership: Life insurance on her husband's life with a death benefit of $500,000 and a replacement cost of $120,000, with her children as the beneficiaries A portfolio of stocks, bonds, and CDs valued at $8,000,000 Personal residence with a fair market value of $500,000 Joint ownership: With her husband: household furnishings, personal property, bank accounts, and automobiles worth a total of $800,000 With her daughter: a vacation condo valued at $400,000 for which her executor has records showing a 20% contribution by her daughter Her will bequeaths the personal residence outright to her husband with the rest and remainder of her estate to her daughter. She had debts of $6,000 and administrative costs of $24,000. Which one of the following amounts, if any, most closely approximates Elfrieda's estate tax liability? Use the Unified Federal Estate and Gift Tax Rates table
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prior to her death in 2022, Elfrieda made lifetime taxable gifts of $34,000. At her death, she was survived by her husband and daughter and owned the following property interests.
Sole ownership:
- Life insurance on her husband's life with a death benefit of $500,000 and a replacement cost of $120,000, with her children as the beneficiaries
- A portfolio of stocks, bonds, and CDs valued at $8,000,000
- Personal residence with a fair market value of $500,000
Joint ownership:
- With her husband: household furnishings, personal property, bank accounts, and automobiles worth a total of $800,000
- With her daughter: a vacation condo valued at $400,000 for which her executor has records showing a 20% contribution by her daughter
Her will bequeaths the personal residence outright to her husband with the rest and remainder of her estate to her daughter. She had debts of $6,000 and administrative costs of $24,000.
Which one of the following amounts, if any, most closely approximates Elfrieda's estate tax liability? Use the Unified Federal Estate and Gift Tax Rates table.
Expert Solution
Step 1 Tax Liability
Elfrieda's estate tax liability is approx $ 30000 (24000+6000).
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education