Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed hisexecutor to distribute his cash and stock to his spouse, Kaffie, and the real estate to a church, The FirstChurch of Methodology. The remainder of Tom's assets were to be placed in trust for three children. Tom'sestate consisted of the following:Assets:Personal assets.Cash and stockIntangible assets (film rights)Real estateLiabilities:MortgageOther liabilities$ 1,780,00024,300,00073,000,00015,300,000114,380,000$ 3,500,0004,400,000$ 7,900,000Estate Tax Due$a. Tom made a taxable gift of $5.40 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 andExhibit 25-2.)Note: Enter your answers in dollars, not millions of dollars.

When one person gives something to another person without taking money, is called a gift such as a gift may be money, property, etc. Every country has a tax law regarding gifts. The calculation of estate tax due is as follows- In the above case, the cash and stock are transferred to the spouse so, it's a part of the marital deduction. WN-1 The Tentative Tax can be calculated as follows_ W.n-2 The current tax on the adjusted taxable gifts is as follows- W.n-3 The calculation of estate tax due is as follows- Note 12.06 million is an estate tax exemption amount for the year 2022 Formula excel snip-Final answer- The estate tax due is $24,024,000

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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 $ 1,780,000 24,300,000 O Cash and stock Intangible assets (film rights) 73,000,000 Real estate 15,300,000 114,380,000 Liabilities: Mortgage Other liabilities $ $ 3,500,000 4,400,000 $ 7,900,000

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 $ 1,780,000 24,300,000 O Cash and stock Intangible assets (film rights) 73,000,000 Real estate 15,300,000 114,380,000 Liabilities: Mortgage Other liabilities $ $ 3,500,000 4,400,000 $ 7,900,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $ 1,250,000 26,300,000 83,000,000 17,300,000 $ 127,850,000 $ 5,500,000 6,400,000 $ 11,900,000 a. Tom made a taxable gift of $7.40 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. Estate Tax Due
Several years ago, Georgia transferred $500,000 of real estate into an irrevocable trust for her son, Lee. The trustee was directed to retain income until Lee's 21st birthday and then pay him the corpus of the trust. Georgia retained the power to require the trustee to pay income to Lee at any time and the right to the assets if Lee predeceased her. What amount of the trust, if any, will be included in Georgia's estate if she dies this year when the value of the real estate in trust is $700,000? Amount to be included in Georgia's estate
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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. $…
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