INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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Montana oversees the Coffee Bean Division at the Sarasota Corp., and she is evaluating different options for the sale of the company's
beans. In the past, the Coffee Bean Division has been selling to external customers only, and has been operating at full capacity. As the
business grew and expanded, so did its production capacity. It is now operating with some idle capacity, and has been debating
whether to sell internally to another business unit. The Coffee Maker Division has recently decided that it will be giving away a free
pound of coffee with each brewer machine purchase. It anticipates needing 14,300 pounds of coffee in the coming year and is
obtaining quotes both internally and externally. The Coffee Bean Division has a capacity of 177,000 pounds of coffee and reported the
following for its external sales: 162,200 pounds resulting in sales of $204,300, variable costs of $123,272, and fixed costs of $54,300.
An external vendor has offered the Coffee Maker Division the following…
None
Jimmy owns two parcels of real estate, Tara and Sundance. Tara is worth $150,000 and Sundance is worth $225,000. Jimmy plans to bequeath Tara directly to his spouse Lois and leave her a life estate in Sundance.
What amount of value will be included in Jimmy's gross estate and taxable estate should he die now?
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