Required information [The following information applies to the questions displayed below.j In 2010 Casey made a taxable gift of $6.1 million to both Stephanie and Linda (a total of $12.2 million in taxable gifts). Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.)
Required information [The following information applies to the questions displayed below.j In 2010 Casey made a taxable gift of $6.1 million to both Stephanie and Linda (a total of $12.2 million in taxable gifts). Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EXHIBIT 25-1 Unified Transfer Tax Rates*
| Tax Base Equal to or Over | Not Over | Tentative Tax | Plus | of Amount Over |
|---|---|---|---|---|
| $ 0 | $10,000 | $ 0 | 18% | $ 0 |
| 10,000 | 20,000 | 1,800 | 20 | 10,000 |
| 20,000 | 40,000 | 3,800 | 22 | 20,000 |
| 40,000 | 60,000 | 8,200 | 24 | 40,000 |
| 60,000 | 80,000 | 13,000 | 26 | 60,000 |
| 80,000 | 100,000 | 18,200 | 28 | 80,000 |
| 100,000 | 150,000 | 23,800 | 30 | 100,000 |
| 150,000 | 250,000 | 38,800 | 32 | 150,000 |
| 250,000 | 500,000 | 70,800 | 34 | 250,000 |
| 500,000 | 750,000 | 155,800 | 37 | 500,000 |
| 750,000 | 1,000,000 | 248,300 | 39 | 750,000 |
| 1,000,000 | 345,800 | 40 | 1,000,000 |
*The applicable credit and exemption is zero for estates that opted out of the estate tax in 2010.
EXHIBIT 25-2 The Exemption Equivalent
| Year of Transfer | Gift Tax | Estate Tax |
|---|---|---|
| 1986 | $500,000 | $500,000 |
| 1987–1997 | 600,000 | 600,000 |
| 1998 | 625,000 | 625,000 |
| 1999 | 650,000 | 650,000 |
| 2000–2001 | 675,000 | 675,000 |
| 2002–2003 | 1,000,000 | 1,000,000 |
| 2004–2005 | 1,000,000 | 1,500,000 |
| 2006–2008 | 1,000,000 | 2,000,000 |
| 2009–2010* | 1,000,000 | 3,500,000 |
| 2011 | 5,000,000 | 5,000,000 |
| 2012 | 5,120,000 | 5,120,000 |
| 2013 | 5,250,000 | 5,250,000 |
| 2014 | 5,340,000 | 5,340,000 |
| 2015 | 5,430,000 | 5,430,000 |
| 2016 | 5,450,000 | 5,450,000 |
| 2017 | 5,490,000 | 5,490,000 |
| 2018 | 11,180,000 | 11,180,000 |
| 2019 | 11,400,000 | 11,400,000 |
*The applicable credit and exemption is zero for taxpayers who opt out of the estate tax in 2010
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Required information
[The following information applies to the questions displayed below.]
In 2010 Casey made a taxable gift of $6.1 million to both Stephanie and Linda (a total of S12.2 million in taxable gifts).
Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives.
(Refer to Exhibit 25-1 and Exhibit 25-2) (Enter your answers in dollars, not millions of dollars. Leave no answer blank.
Enter zero if applicable.)
b. This year Casey made a taxable gift of $16.1 million to Stephanie. Casey is not married. and the 2010 gift was the only other taxable
gift he has ever made.
Gift tax due
Unused exemption equivalent
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Transcribed Image Text:To.mheducation.com/ext/map/index.html? con=con&external browser-0&launchUri=https%253A%252F%252Fblackboard.strayer.edu%252Fwebapps%252Fportal.
Answered: The X
The.. 6 A Course in Miradles A New Earth
MyNeopost ACTIVE | University. https://secure.times. Guide to forecastin.
Assume Inventory d...
Homework i
Saved
Help
Save & E
Che
Required information
[The following information applies to the questions displayed below.]
In 2010 Casey made a taxable gift of $6.1 million to both Stephanie and Linda (a total of S12.2 million in taxable gifts).
Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives.
(Refer to Exhibit 25-1 and Exhibit 25-2) (Enter your answers in dollars, not millions of dollars. Leave no answer blank.
Enter zero if applicable.)
b. This year Casey made a taxable gift of $16.1 million to Stephanie. Casey is not married. and the 2010 gift was the only other taxable
gift he has ever made.
Gift tax due
Unused exemption equivalent
< Prev
3 4
of 7 #
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