Question
In: Accounting
Will is single and owns the following: House, solely owned, FMV of $3,200,000 Auto, solely owned,...
Will is single and owns the following:
House, solely owned, FMV of $3,200,000
Auto, solely owned, FMV of $25,000
Stock Portfolio, solely owned, FMV $6,000,000
Bank account, JTWROS with his daughter, FMV $1.5 Million
401k vested account balance of $3.5 million, with his son being the
beneficiary.
If Will died today what would be the value of his probate estate? What about the value of his gross estate? Please show your work.
Solutions
Expert Solution
A probate estate is all the assets a person owns at his or her death that are subject to probate administration. Probate administration is the process of proving to a probate court that the will is genuine. As per law, assets owned by the deceased in his own name, tenants in common and assets payable to the estate are the one which are included in the probate estate valuation. Accordingly, value of house ($ 3200000) + auto ($25000) + stock portfolio ($6000000) would be included in the value of probabte estate.
Bank accounts, JTWROS and 4015 vested account name with son as ben. shall not be included in the valuation of $ 9,225,000
Gross estate is the total dollar
value of an individual’s property and assets at the time of their
death. The gross estate figure does not reflect liabilities such as
debt owed and taxes. When those charges are deducted, the sum
figure represents the net value of individual’s estate. Thus value
of gross estate include all of the above assets valuing $
14,225,000
ekkarill92 answered 1 year agoRelated Solutions
Will is single and owns the following: House, solely owned, FMV of $3,200,000 Auto, solely owned,...
Will is single and owns the following:
House, solely owned, FMV of $3,200,000
Auto, solely owned, FMV of $25,000
Stock Portfolio, solely owned, FMV $6,000,000
Bank account, JTWROS with his daughter, FMV $1.5 Million
401k vested account balance of $3.5 million, with his son being the
beneficiary
If Will's Last Will had called for a $500,000 charitable
contrubution to the Red Cross, how much would it have saved the
estate in estate taxes?
Tamika owned 200 shares of Gold Corporation with a basis of $12,000 and a FMV of...
Tamika owned 200 shares of Gold Corporation with a basis of
$12,000 and a FMV of $24,000. Tamika received 20 stock rights as a
nontaxable distribution with a total FMV of $8,000. Tamika sold the
stock rights for $4,000. Tamika's gain or loss on the sale was
(LABEL AND SHOW ALL WORK WITH CALCULATIONS)
A) $1,000.
B) $3,000.
C) $4,000.
D) ($4,000).
White Corporation owns a rental building (its only asset) with a gross FMV of $1,000, subject...
White Corporation owns a rental building (its only asset) with a
gross FMV of $1,000, subject to a nonrecourse mortgage of $400.
White’s adjusted basis for this building is $300. Abby owns all of
White’s stock, with a total basis of $100. White has $200 of
E&P. White is on the accrual method of accounting and reports
on the calendar year. Assume that the corporate tax payable by
White on $700 gain is $250 and on $600 gain is $200....
Paul owns undeveloped land (a capital asset, FMV $100,000 and adjusted basis $40,000) and transfers the...
Paul owns undeveloped land (a capital asset, FMV $100,000 and
adjusted basis $40,000) and transfers the land to the newly created
Three Dog Corporation in exchange for the alternative consideration
listed below. Assume there is no Original Issue Discount (OID) in
any debt, there is not any non-qualified preferred stock and Paul
is the sole shareholder. What is the income recognition, if any,
and basis consequences to Paul and Three Dog Corporation on the
different exchanges listed below?
a. 20...
Barb owns all 100 shares of Lattice Corporation stock having a $ 0.85 million FMV. Her...
Barb owns all 100 shares of Lattice Corporation stock having a $
0.85 million FMV. Her basis in the stock is $ 450000.
Lattice'sE&P balance is $ 400000. Nick would like to purchase
the stock but wants only the corporation's non-cash assets valued
at $ 700000. Nick is willing to pay $ 700000 for these assets.
Requirement a. What are the tax consequences to Barb,Nick,and
Lattice if Nick purchases 75 shares of Lattice stock for $700,000
and Lattice redeems Barb's...
Suppose you want to test whether you can solely rely on assessment to predict house price,...
Suppose you want to test whether you can solely rely on
assessment to predict house price, that is, knowing housing
characteristics will not help you predict housing price, once
assessment is included in the model. Using a sample of 125 houses,
you have estimated
Price= α+ β1 assess+ β2 lotsize+ β3 sqrft+ β4 bdrms+ u
and you decide to do a test at the 5% significance level. Then
your best approach to answering the question is to
a) check each...
A wall in a house contains a single window. The window consists of a single pane...
A
wall in a house contains a single window. The window consists of a
single pane of glass whose area is 0.16m^2 and whose thickness is
2.0 mm. Treat the wall as a slab of the insulating material
styrofoam whose are and thickness are 18m ^ 2 and 0.10 m,
respectively. Heat is lost via conduction through the wall and the
window. The temperature difference between the inside and outside
is the same for the wall and the window. Of...
What describes a day of personal use the property owner rented his house to his employer for $50. the FMV is $75 a day.
What describes a day of personal use the property owner rented his house to his employer
for $50. the FMV is $75 a day.
Roach owned a truck with a large crane attached. Roach took the truck to Vern’s Auto...
Roach owned a truck with a large crane attached. Roach
took the truck to Vern’s Auto to have the crane removed with the
intention of mounting it on another vehicle in the future. Vern’s
allowed Roach to leave the crane in its yard, assuring him it would
be safe. A few months later, Roach decided to sell the crane. When
he went to get the crane, it was gone. Vern’s had no idea what had
happened to it, and because...
Michael lives on an island and owns a beach house worth $400,000. Of that, $100,000 is...
Michael lives on an island and owns a beach house worth
$400,000. Of that, $100,000 is the cost of land and $300,000 is the
cost of the structure. The probability that a hurricane destroys
his house is 3 percent (he will still own the land). Michael can
purchase hurricane insurance at the price of $2 for each $100 of
coverage.
1. What is Michael’s contingent consumption bundle if Michael
does not purchase insurance?
2. What is Michael’s contingent consumption bundle...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Describe the principles and operations of movement sensors: Doppler-Effect Velocity sensor and Spring-Mass Accelerometor; State the...
- This is all one question, thank you so much in advance. The Bigbee Bottling Company is...
- For Questions 1-3: consider the following code: public class A { private int number; protected String...
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
ADVERTISEMENT