Problem 25-50 (LO 25-3) (Static) [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 $ 800,000 24,000,000 71,500,000 15,000,000
Problem 25-50 (LO 25-3) (Static) [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 $ 800,000 24,000,000 71,500,000 15,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 25-50 (LO 25-3) (Static)
[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
$ 800,000
24,000,000
71,500,000
15,000,000
$ 111,300,000
$ 3,200,000
4,100,000
$ 7,300,000
Problem 25-50 Part a (Static)
a. Tom made a taxable gift of $8 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.
Estate Tax Due](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f5c61e2-e802-4942-b487-9ac6bc4ebdc0%2F0430a9aa-20bd-4c6d-8174-bc7945975ac8%2Fe0a1muh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 25-50 (LO 25-3) (Static)
[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
$ 800,000
24,000,000
71,500,000
15,000,000
$ 111,300,000
$ 3,200,000
4,100,000
$ 7,300,000
Problem 25-50 Part a (Static)
a. Tom made a taxable gift of $8 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.
Estate Tax Due
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