Required Information [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 $ 1,130,000 25,300,000 78,000,000 16,300,000 $ 120,730,000 Answer is not complete. $ 4,500,000 5,400,000 $ 9,900,000 a. Tom made a taxable gift of $6.40 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.
Required Information [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 $ 1,130,000 25,300,000 78,000,000 16,300,000 $ 120,730,000 Answer is not complete. $ 4,500,000 5,400,000 $ 9,900,000 a. Tom made a taxable gift of $6.40 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.
Chapter13: Estate Taxes
Section: Chapter Questions
Problem 1CTD
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![Required Information
[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
Gross estate
Marital Deduction
Charitable Deduction
Debts
Taxable Estate
Adjusted taxable gifts
Cumulative taxable transfers
Tax on cumulative transfers
Less taxes paid on prior gifts
Tentative estate tax
a. Tom made a taxable gift of $6.40 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.
Answer is not complete.
$ 1,130,000
25,300,000
78,000,000
16,300,000
$ 120,730,000
Applicable credit (tax on $12.06 million)
Estate Tax Due
$ 4,500,000
5,400,000
$ 9,900,000
$ 120,730,000
25,300,000
16,300,000
9,900,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9100c77-f7c9-43f5-bb06-b1265e0324d3%2Facde536a-d3ca-4cb4-9c7d-5e6602e8b347%2F89ll712_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[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
Gross estate
Marital Deduction
Charitable Deduction
Debts
Taxable Estate
Adjusted taxable gifts
Cumulative taxable transfers
Tax on cumulative transfers
Less taxes paid on prior gifts
Tentative estate tax
a. Tom made a taxable gift of $6.40 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.
Answer is not complete.
$ 1,130,000
25,300,000
78,000,000
16,300,000
$ 120,730,000
Applicable credit (tax on $12.06 million)
Estate Tax Due
$ 4,500,000
5,400,000
$ 9,900,000
$ 120,730,000
25,300,000
16,300,000
9,900,000
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