Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Textbook Question
Chapter 19, Problem 11P
Which of the following is a specific legacy?
- a. The gift of all remaining estate property to a charity.
- b. The gift of $44,000 cash from a specified source.
- c. The gift of $44,000 cash.
- d. The gift of 1,000 shares of stock in IBM.
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Sanaeil Center for Education, a nonprofit organization, learns that it has been named
as the remainder beneficiary of an irrevocable charitable remainder trust. When the
donor dies, the trust income will be distributed to the donor's spouse until their
death, at which point the nonprofit is expected to receive the beneficial interest,
with an estimated actuarial value of $500,000 as a permanent endowment. What
journal entry would the nonprofit organization record at the time the irrevocable
trust is created?
7. Determine the amount of the donation deduction for each of the following situations: (Assume all organizations are
qualified public charities)
A. Personal furniture given to a local church. FMV $500 basis $2,000
B. A coin collection given to the YMCA. FMV $3,000 basis $1,000
C. Stock held or 5 years given to a local charity. FMV $5,000 basis $2,000
D. Stock held for 5 months given to a local charity. FMV $5,000, basis 2,000
E. An oil painting with a FMV $100,000 basis $40,000. The painting
is given to museum and the museum plans to display the painting.
F. Same as (E) above except the painting is given to the Heart Association to be
sold at the annual fundraising event.
27. G transferred $20,000,000 to Trust T. Trust T was an irrevocable trust which provided for income to individual I (G's friend) for 10 years, and the remainder to a qualified charity ("QC"). Assume the present value of the income interest was $5,000,000 at the time of the transfer, and the value of the trust (remainder interest) that eventually passed to I was $17,000,000. What is the amount of G's taxable gift?
a. $0b. $3,000,000c. $5,000,000d. $20,000,000e. None of a-d is correct
Chapter 19 Solutions
Advanced Accounting
Ch. 19 - Prob. 1QCh. 19 - Prob. 2QCh. 19 - Prob. 3QCh. 19 - Prob. 4QCh. 19 - Prob. 5QCh. 19 - Prob. 6QCh. 19 - Prob. 7QCh. 19 - Prob. 8QCh. 19 - What claims against an estate have priority?Ch. 19 - Prob. 10Q
Ch. 19 - Prob. 11QCh. 19 - Prob. 12QCh. 19 - Prob. 13QCh. 19 - How is the federal estate tax computed?Ch. 19 - Prob. 15QCh. 19 - Prob. 16QCh. 19 - Prob. 17QCh. 19 - Prob. 18QCh. 19 - Prob. 19QCh. 19 - Prob. 20QCh. 19 - Prob. 21QCh. 19 - Prob. 22QCh. 19 - Prob. 23QCh. 19 - Prob. 24QCh. 19 - Prob. 25QCh. 19 - Prob. 26QCh. 19 - Prob. 27QCh. 19 - Prob. 28QCh. 19 - Prob. 29QCh. 19 - Prob. 30QCh. 19 - Prob. 1PCh. 19 - Prob. 2PCh. 19 - Prob. 3PCh. 19 - Prob. 4PCh. 19 - Prob. 5PCh. 19 - Prob. 6PCh. 19 - Prob. 7PCh. 19 - Prob. 8PCh. 19 - Prob. 9PCh. 19 - Prob. 10PCh. 19 - Which of the following is a specific legacy? a....Ch. 19 - Prob. 12PCh. 19 - Prob. 13PCh. 19 - Prob. 14PCh. 19 - Prob. 16PCh. 19 - Prob. 21PCh. 19 - Prob. 22PCh. 19 - Prob. 23PCh. 19 - Prob. 24PCh. 19 - Prob. 25PCh. 19 - Prob. 26PCh. 19 - Prob. 27PCh. 19 - Prob. 28PCh. 19 - Prob. 29PCh. 19 - Prob. 30PCh. 19 - Prob. 31PCh. 19 - Prob. 32PCh. 19 - Prob. 33PCh. 19 - Prob. 34PCh. 19 - Prob. 35P
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