Question

In: Accounting

Anne Smith had a $5,500,000 net worth at the time of her death in December 2018....

Anne Smith had a $5,500,000 net worth at the time of her death in December 2018. In addition, she had a $250,000 whole life policy with a $40,000 of accumulated cash value; her niece was designated as the beneficiary. She also had a $150,000 pension plan death benefit. Calculations: 1. What was the value of Anne’s gross estate? 2. How much of her estate is taxable? 3. How much estate tax will need to be paid? 4. How much of her estate must pass through probate?

Solutions

Expert Solution


Related Solutions

At her death in 2015, Sarah had a taxable estate that was worth $7,430,000. For each...
At her death in 2015, Sarah had a taxable estate that was worth $7,430,000. For each of the following situations, compute the estate tax that is due at Sarah's death.                                                                                     At her death in 2015, Sarah was single (never married). Sarah had made no taxable gifts during her lifetime.         ...
In 1913, Andrew Carnegie's net worth was approximately $475 million. In 2018, Mark Zuckerberg’s net worth...
In 1913, Andrew Carnegie's net worth was approximately $475 million. In 2018, Mark Zuckerberg’s net worth was $58 billion. One dollar ($1) in January of 1913 has the same buying power as $25.76 in September of 2018. What is the real wealth for Andrew Carnegie in 1913? a. 2.5b units of goods and services b. 1.5b units of goods and services c. 768m units of goods and services d. 475m units of goods and services e. 2.25b units of goods...
Joanne has provided you with her net worth statement and has told you her monthly net...
Joanne has provided you with her net worth statement and has told you her monthly net income is $5,000 and monthly expenses are $3,800. Assets: Chequing account $7,200 Non-registered money market fund $15,000 (emergency savings) TFSA Account $69,500 (savings for down payment on a home) Car $20,000 Liabilities: Credit card debt $1,000 Student loan $41,000 Using the information she provided you, calculate her liquidity ratio. Your answer should be a whole number, to two decimal places.
A company had net fixed assets of $7 million on December 31, 2018 and $10 million...
A company had net fixed assets of $7 million on December 31, 2018 and $10 million on December 31, 2019. For 2019, the company’s depreciation expense was $1 million and its cash flow from operations was $7 million. During 2019, the company’s net working capital increased by $500,000 and net capital spending was $4 million. What was the firm’s cash flow from assets?
Culver Corporation had a net income for the current year ending December 31, 2018 of $1,150,000....
Culver Corporation had a net income for the current year ending December 31, 2018 of $1,150,000. Throughout 2018 the following items were outstanding: ? 440,000 common shares ? 21,000 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 ? 49,000 Class B $4 non-cumulative preferred shares that were convertible at a rate of two preferred shares to one common share. ? $470,000, 8% bonds that were convertible to 16,000 common shares ?...
Donald Smith has Medical wages of $174,000.00 during 2018. His employer withheld $2,523.00. His wife Anne...
Donald Smith has Medical wages of $174,000.00 during 2018. His employer withheld $2,523.00. His wife Anne has $150,000.00 of Medicare wages for the same period with $2,175.00 withheld. Complete their Form 8959 for 2018.
At the time of her death, Ariana held the following assets. (All are at Fair market...
At the time of her death, Ariana held the following assets. (All are at Fair market Value) Personal residence(Ariana and peter, tenants by the entirety with right of survivor-ship) 900,000, Savings account(ariana and Rex, joint tenants with right of survivorship) with funds provided by Rex 40,000 Certificate of deposit (Ariana, payable on proof of death to Rex) 100,000 Unimproved real estate(Ariana and Rex, equal tenants in common) 500,000 Insurance policy on Ariana's life, issued by lavender Company(Arianas estate is the...
Morgan, a​ widow, recently passed away. The value of her assets at the time of death...
Morgan, a​ widow, recently passed away. The value of her assets at the time of death was $9,693,000. The cost of her funeral was $6,772​, while estate administrative costs totaled $39,989. As stipulated in her​ will, she left $999,580 to charities. Based on this information answer the following​ questions: a. Determine the value of​ Morgan's gross estate. b. Calculate the value of her taxable estate. c. What is her​ gift-adjusted taxable estate​ value? d. Assuming she died in 2014​, how...
a) The company received a grant worth RM6,000 on 15 December 2018. It was an incentive...
a) The company received a grant worth RM6,000 on 15 December 2018. It was an incentive by the government for retraining a group of its employees. The three-month training started in December 2018 has a cost of RM10,000 a month. None of the transactions related to the above has been recorded. b) Included in the long-termloans is a loan worth RM4,000,000 at 5% annual interest, granted by a local bank on 1 August 2018, for five-year period. Instalment for the...
The Jamesway Corporation had the following situations on December 2018. On December 20, 2018, Jamesway received...
The Jamesway Corporation had the following situations on December 2018. On December 20, 2018, Jamesway received a $6,000 payment from a customer for services to be rendered early in 2019. Service revenue was credited. On December 1, 2018, the company paid a local radio station $6,000 for 40 radio ads that were to be aired, 20 per month, throughout December and January. Prepaid advertising was debited. Employee salaries for the month of December totaling $36,000 will be paid on January...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT