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 wife, Kaffie, and the real estate to his church, The First Church of Methodology. The remainder of his assets were to be placed in trust for his 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 $ 1,270,000 25,700,000 80,000,000 16,700,000 $ 123,670,000 $ 4,900,000 5,800,000 $ 10,700,000
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 wife, Kaffie, and the real estate to his church, The First Church of Methodology. The remainder of his assets were to be placed in trust for his 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 $ 1,270,000 25,700,000 80,000,000 16,700,000 $ 123,670,000 $ 4,900,000 5,800,000 $ 10,700,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject :- Accounting
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[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 wife, Kaffie, and the real estate to his church, The First
Church of Methodology. The remainder of his assets were to be placed in trust for his 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
1,270,000
25,700,000
80,000,000
16,700,000
$ 123,670,000
4,900,000
5,800,000
$ 10,700,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83b62d92-ae46-4dd3-8277-7ec31e6fe3f8%2Ff3a57e99-4b7c-40c0-958b-21e109e5d444%2Fubo0hp_processed.png&w=3840&q=75)
Transcribed Image Text:!
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 wife, Kaffie, and the real estate to his church, The First
Church of Methodology. The remainder of his assets were to be placed in trust for his 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
1,270,000
25,700,000
80,000,000
16,700,000
$ 123,670,000
4,900,000
5,800,000
$ 10,700,000
Transcribed Image Text:a. Tom made a taxable gift of $6.80 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit
25-2.)
(Enter your answers in dollars, not millions of dollars.)
Gross estate
Debts
Adjustable gross estate
Marital deduction
Charitable deduction
Taxable estate
Adjusted taxable gifts
Cumulative taxable transfers
Current tax rates
Tax on cumulative transfers
Gift taxes payable on adjusted taxable gifts at current rate
Tentative estate tax
Applicable credit
Gross estate tax
%
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