Right before his death from a terminal illness, Shing makes a gift of $690,000 cash to his church-a gift that he had planned to bequeath to the church anyway. Presuming Shing had a marginal Federal income tax rate of 35% and his Federal estate tax bracket is 40%, what is the tax effect of his lifetime transfer. Ignore the 20%/30%/50 % / 60% contribution limitations. If an amount is zero, enter "0". in income taxes. If made as a bequest from his estate, the estate will save If gifted during his lifetime, Shing will save in estate taxes.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Right before his death from a terminal illness, Shing makes a gift of $690,000 cash to his church-a gift that he had planned to bequeath to
the church anyway. Presuming Shing had a marginal Federal income tax rate of 35% and his Federal estate tax bracket is 40%, what is the
tax effect of his lifetime transfer.
Ignore the 20%/30%/50 % / 60% contribution limitations.
If an amount is zero, enter "0".
in income taxes. If made as a bequest from his estate, the estate will save
If gifted during his lifetime, Shing will save $
in estate taxes.
Transcribed Image Text:Right before his death from a terminal illness, Shing makes a gift of $690,000 cash to his church-a gift that he had planned to bequeath to the church anyway. Presuming Shing had a marginal Federal income tax rate of 35% and his Federal estate tax bracket is 40%, what is the tax effect of his lifetime transfer. Ignore the 20%/30%/50 % / 60% contribution limitations. If an amount is zero, enter "0". in income taxes. If made as a bequest from his estate, the estate will save If gifted during his lifetime, Shing will save $ in estate taxes.
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