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 $ 1,040,000 Cash and stock 24,200,000 Intangible assets (film rights) 72,500,000 Real estate 15,200,000 $ 112,940,000 Liabilities: Mortgage $ 3,400,000 Other liabilities 4,300,000 $ 7,700,000 a. Tom made a taxable gift of $5.30 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.

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 $ 1,040,000 Cash and stock 24,200,000 Intangible assets (film rights) 72,500,000 Real estate 15,200,000 $ 112,940,000 Liabilities: Mortgage $ 3,400,000 Other liabilities 4,300,000 $ 7,700,000 a. Tom made a taxable gift of $5.30 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.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter27: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 37P

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Assets:
Personal assets	$ 1,040,000
Cash and stock	24,200,000
Intangible assets (film rights)	72,500,000
Real estate	15,200,000
	$ 112,940,000
Liabilities:
Mortgage	$ 3,400,000
Other liabilities	4,300,000
	$ 7,700,000

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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 $ 1,520,000 26,200,000 82,500,000 17,200,000 $ 127,420,000 Estate Tax Due $ 5,400,000 6,300,000 $ 11,700,000 Problem 25-50 Part a (Algo) a. Tom made a taxable gift of $7.30 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.
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 $ 1,020,000 25,900,000 81,000,000 16,900,000 $ 124,820,000 $ 5,100,000 6,000,000 $ 11,100,000 a. Tom made a taxable gift of $7.00 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. Estate Tax Due
Marie Hardy’s will has the following provisions: "I leave the cash balance deposited in the First National Bank (up to a total of $50,700) to Jack Abrams. I leave $19,800 cash to Suzanne Benton. I leave 1,260 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and properties to Wilbur N. Ed." Assume that the estate has the following assets: $40,600 cash in the First National Bank, $17,700 cash in the New Hampshire Savings and Loan, 1,050 shares of Coca-Cola stock, 1,360 shares of Xerox stock, a house, and other property valued at $14,100. What distributions will be made from this estate? Assume that the estate has the following assets: $55,200 cash in the First National Bank, $5,300 cash in the New Hampshire Savings and Loan, 1,360 shares of Coca-Cola stock, 590 shares of Xerox stock, and other property valued at $29,000. What distributions will be made from this estate?
Marie Hardy’s will has the following provisions: "I leave the cash balance deposited in the First National Bank (up to a total of $50,000) to Jack Abrams. I leave $18,000 cash to Suzanne Benton. I leave 1,000 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and properties to Wilbur N. Ed." a. Assume that the estate has the following assets: $41,000 cash in the First National Bank, $16,000 cash in the New Hampshire Savings and Loan, 800 shares of Coca-Cola stock, 1,100 shares of Xerox stock, a house, and other property valued at $13,000. What distributions will be made from this estate? (Make estate distributions in the order mentioned in the question.) cash Jack 41,000 cash Suzanne 18,000 Coca-Cola Cindy 800 Shares House Dennis 0 Other property Wilbur ???? The problem needs a $$ amount for Wilbur, and I cannot get it b. Assume that the estate has the following assets: $55,000 cash in the First National Bank, $6,000 cash…
Marie Hardy's will has the following provisions: "I leave the cash balance deposited in the First National Bank (up to a total of $50,000) to Jack Abrams. leave $18,000 cash to Suzanne Benton. I leave 1,000 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and properties to Wilbur N. Ed." a. Assume that the estate has the following assets: $41,000 cash in the First National Bank, $16,000 cash in the New Hampshire Savings and Loan, 800 shares of Coca-Cola stock, 1,100 shares of Xerox stock, a house, and other property valued at $13,000. What distributions will be made from this estate? b. Assume that the estate has the following assets: $55,000 cash in the First National Bank, $6,000 cash in the New Hampshire Savings and Loan, 1,200 shares of Coca-Cola stock, 600 shares of Xerox stock, and other property valued at $22,000. What distributions will be made from this estate? (Make estate distributions in the order mentioned…
Montgomery has decided to engage in wealth planning and has listed the value of his assets below. The life insurance has a cash surrender value of $154,000, and the proceeds are payable to Montgomery’s estate. The Walen Trust is an irrevocable trust created by Montgomery’s brother 10 years ago and contains assets currently valued at $800,000. The income from the trust is payable to Montgomery’s faithful butler, Walen, for his life, and the remainder is payable to Montgomery or his estate. Walen is currently 37 years old, and the §7520 interest rate is currently 5.4 percent. Montgomery is unmarried and plans to leave all his assets to his surviving relatives. (Refer to Exhibit 25-1, Exhibit 25-2 and Exhibit 25-4.) Property Value Adjusted Basis Auto $ 37,000 $ 72,000 Personal effects 92,000 127,000 Checking and savings accounts 284,000 284,000 Investments 2,585,000 855,000 Residence 1,485,000 1,065,000 Life insurance proceeds 1,085,000 84,000 Real estate investments…
Charles Kamp, a divorced person, died in February of the current year with an estate consisting of assets valued at $7,008,000 and liabilities of $380,000. Charles’s will contained the following provisions:a. Robert Sullivan would serve as executor of the estate and trustee for the Kamp Children Trust.b. Timberland with a market value of $560,000 would be placed in a charitable remainder trust. The income from the trust would accrue to the benefit of his sister Marsha Kamp Rodriquez. Income would be reduced by the depletion charge associated with the number of board feet of lumber harvested.c. Securities with a value of $25,000 would be given to the Milwaukee Art Museum, recognized as a charitable organization.d. Securities with a value of $600,000 would be given to his married daughter, Maria Kamp Wilson.e. Each of his three best hunting friends would be paid $200,000 from the proceeds of the sale of Charles’s investment in hunting land in Alaska. The hunting land was valued at…
After the death of Lennie Pope, his will was read. It contained the following provisions:∙ $110,000 in cash goes to decedent’s brother, Ned Pope.∙ Residence and other personal property go to his sister, Sue Pope.∙ Proceeds from the sale of Ford stock go to uncle, Harwood Pope.∙ $300,000 goes into a charitable remainder trust.∙ All other estate assets are to be liquidated with the cash going to Victoria Jones.a. Prepare journal entries for the following transactions that subsequently occur:(1) Discovered the following assets (at fair value): Cash . . . . . . . . . . . . . . . . . . . . $ 19,000Certificates of deposit .. . . . . .90,000Dividends receivable . . . . . . . . . 3,000Life insurance policy . . . . . . . . 450,000Residence and personal effects . . . . . . . . . . . . . . . . 470,000Shares of Ford Motor Company . . . . . . . . . . . . . . . . 72,000Shares of Xerox Corporation . . . . . . . . . . . . . . . . . . . 97,000 (2) Collected life insurance policy.(3) Collected dividends…
Marie Hardy’s will has the following provisions:“I leave the cash balance deposited in the First National Bank (up to a total of $50,000) to Jack Abrams. I leave $18,000 cash to Suzanne Benton. I leave 1,000 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and proper-ties to Wilbur N. Ed.”a. Assume that the estate has the following assets: $41,000 cash in the First National Bank, $16,000 cash in the New Hampshire Savings and Loan, 800 shares of Coca-Cola stock, 1,100 shares of Xerox stock, a house, and other property valued at $13,000. What distributions will be made from this estate?b. Assume that the estate has the following assets: $55,000 cash in the First National Bank, $6,000 cash in the New Hampshire Savings and Loan, 1,200 shares of Coca-Cola stock, 600 shares of Xerox stock, and other property valued at $22,000. What distributions will be made from this estate?
1. David Collins died during the current year. The personal representative of David's estate reviewed the following assets: Stocks in David's name only: 2,000,000 Investment property in a trust that David has the right to revoke: 1,500,000 Primary home owned jointly with his wife (wife did not contribute to the purchase): 1,000,000 Insurance policy owned / insuring David with the proceeds payable to his daughter: 800,000 Vacation home owned jointly with his son (son did not contribute to the purchase): 500,000 Cash placed in an irrevocable trust by David 8 years ago with David's friend as trustee: 600,000 What is the value of David's gross estate for estate tax purposes? $3,500,000 b. $4,250,000 а. c. $5,300,000 d. $6,400,000
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