The Alice Brittain Estate, valued at $14.8 million, includes the following assets: A joint and last survivor annuity that pays Alice $5,000 monthly; the surviving annuitant, her sister, Joan, would receive a survivorship annuity amount of $3,500 monthly A solely owned tree nursery business located on 1,000 acres in a rapidly developing urban fringe area in the state of Washington; the nursery and the business-related land are valued at $8 million (the land alone is valued at $4 million); Alice has worked actively in the business during the past 20 years; the nursery property and business are given to her son by her will 50,000 shares of publicly traded stock, valued at $3 million; there is a total of 50 million outstanding shares, with an average daily trading volume of 2 million shares When Alice dies, the valuation technique that would be appropriate to reduce the value of her gross estate is

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter3: Income Sources
Section: Chapter Questions
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48. The Alice Brittain Estate, valued at $14.8 million, includes the following assets:

  • A joint and last survivor annuity that pays Alice $5,000 monthly; the surviving annuitant, her sister, Joan, would receive a survivorship annuity amount of $3,500 monthly
  • A solely owned tree nursery business located on 1,000 acres in a rapidly developing urban fringe area in the state of Washington; the nursery and the business-related land are valued at $8 million (the land alone is valued at $4 million); Alice has worked actively in the business during the past 20 years; the nursery property and business are given to her son by her will
  • 50,000 shares of publicly traded stock, valued at $3 million; there is a total of 50 million outstanding shares, with an average daily trading volume of 2 million shares

When Alice dies, the valuation technique that would be appropriate to reduce the value of her gross estate is

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