Tom Hruise was an enter
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 14-50 (LO 14-3) (Algo)
[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
Problem 14-50 Part a (Algo)
$ 1,130,000
25,300,000
78,000,000
16,300,000
$ 120,730,000
Estate Tax Due
$ 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f3de750-c79a-4d84-9c2f-7a65c0d876cb%2F141e5293-f3d7-4b49-affa-9af82e02b626%2Fma62k4l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2
k
t
nces
Required information
Problem 14-50 (LO 14-3) (Algo)
[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
Problem 14-50 Part a (Algo)
$ 1,130,000
25,300,000
78,000,000
16,300,000
$ 120,730,000
Estate Tax Due
$ 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.
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