Zack died on November 15th. The assets in his estate were valued at the date of death and on the alternate valuationdate, respectively, as follows:UAAssetOHomeInvestmentsIRASCopyrightsDate-of-DeathValue$500,000$1,000,000$600,000$400,000The executor sold the home on December 15th for $650,000. If Zack's executor properly elects the alternate valuationdate method, what is the value of Zack's gross estate?O $2,225,000$2,250,000$2,500,000$2,375,000AlternateValuationDate Value$550,000$800,000$650,000$300,000

AssetDate of death value Alternate Valuation date value…

Answered: Zack died on November 15th. The assets…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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At the time of her death on September 4, Alicia held the following assets: Bonds of Emerald Tool Corporation Stock in Drab Corporation Insurance policy (face amount of $1,456,000) on the life of her brother, Mitch Traditional IRAs Cash surrender value. Fair Market Value The amount included in Alicia's gross estate for these items is $ $3,640,000 4,368,000 * 291,200 1,092,000 Alicia also held a lifetime income interest in a trust (fair market value of trust assets $5,500,000) created by her late spouse Bert. (The executor of Bert's estate had made a QTIP election.) In October, Alicia's estate received an interest payment of $15,000 ($7,500 accrued before September 4) paid by Emerald and a cash dividend of $10,550 from Drab. The Drab dividend was declared on August 19 and was payable to date of record shareholders on September 3. Although Mitch survives Alicia, she is the designated beneficiary of the insurance policy. The IRAs are distributed to Alicia's children.
During the current year, David sells a tract of land for $700,000. The property was received as a gift from Marva on March 10, 1995, when the property had a $340,000 fair market value (FMV). The taxable gift was $330,000 because the annual exclusion was $10,000 in 1995. Marva purchased the property on April 12, 1980, for $76,000. At the time of the gift, Marva paid a gift tax of $17,000. In order to sell the property, David paid a sales commission of $21,000. Read the requirements. Requirement a. What is David's realized gain on the sale? Select the formula, then calculate David's realized gain on the sale. (Do not round intermediary calculations. Only round the amounts you input in the cells to the nearest dollar.) Minus: Realized gain Requirement b. How would your answer to Part a change, if at all, if the FMV of the gift property was $45,000 as of the date of the gift? The realized gain in this scenario is
Nina owns land and property which cost $340,000 including $84,000 for the land on 1 January 20X3. Nina’s financial year ends on 31 December and depreciation is provided for using a straight line method. The building had a useful life of 20 years. On the 1 January 20X6, Nina revalued the land and buildings to their current value of $700,000 including $150,000 for the land. There were no changes to the remaining useful life of the building after revaluation. What is the balance on the revaluation surplus account immediately after revaluation? A. $411,200 B. $411,000 C. $398,400 D. $385,600
dan purchased machinery (7 yr. property) to use in her business on 9/1/18 at a cost of $ 40,000. This was the only property placed in service in 2018. On 3/1/20 dan sold this equipment for $ 44,000. Answer each part below as follows: How much depreciation (use MACRS 200DB method) will Gabby claim in the following years? 2018 2019
Donna Stober's estate has the following assets (all figure approximate fair value): Investments in stocks and bonds $1,552000 House 756,000 Cash 74,900 Investment land 60,800 Automobiles (three rare vehicles) 59,000 Other assets 108,000 The house, cash, and other assets are left to the decendent's spouse. The investment land is contributed to a charitable organization. The automobiles are to be given to the decendent's brother . The investments in stocks and bonds are to be put into a turst fund. The income generated by this trust will go to the decendent's spouse annually until all of the couple's children have reached the age of 25. At that time, the…
Jerry Tasch’s will has the following provisions: $150,000 in cash goes to Thomas Thorne. All shares of Coca-Cola go to Cindy Phillips. Residence goes to Kevin Simmons. All other estate assets are to be liquidated with the resulting cash going to the First Church of Freedom, Missouri. Prepare journal entries for the following transactions: Discovered the following assets (at fair value): Collected interest of $7,000. Paid funeral expenses of $20,000. Discovered debts of $40,000. Located an additional savings account of $12,000. Conveyed title to the residence to Kevin Simmons. Collected life insurance policy. Discovered additional debts of $60,000. Paid debts totaling $100,000. Conveyed cash of $150,000 to appropriate beneficiary. Sold the shares of Polaroid for $112,000. Paid administrative expenses of $10,000.
Voytek transfers land worth $200,000 with an adjusted basis of $17,000 to his wife Gosha for her birthday. The land was purchased 3 years ago. Assume no gift tax was paid on the transfer. a) Does Gosha have gross income as a result of the gift? Yes or No. No? b If the answer is no, Explain why. c)What is Gosha basis in the land? d)What is Gosha holding period in the land?

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