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 $ 1,240,000 24,700,000 75,000,000 15,700,000 $116 648 888
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 $ 1,240,000 24,700,000 75,000,000 15,700,000 $116 648 888
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem 25-50 (LO 25-3) (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
$ 1,240,000
24,700,000
75,000,000
15,700,000
$116,640,000
Estate Tax Due
$ 3,900,000
4,800,000
$ 8,700,000
Problem 25-50 Part a (Algo)
a. Tom made a taxable gift of $5.80 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%2F1a5a0e4a-136f-4313-9e29-0a2c8f6bfa2e%2Fd130feac-7bff-4d0c-a890-d4113a6b5882%2F374n4b4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 25-50 (LO 25-3) (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
$ 1,240,000
24,700,000
75,000,000
15,700,000
$116,640,000
Estate Tax Due
$ 3,900,000
4,800,000
$ 8,700,000
Problem 25-50 Part a (Algo)
a. Tom made a taxable gift of $5.80 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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