Daughter furnished $20,000, and the descedent furnished $60,000 to acquire the stock, costing $80,000. The $20,000...

Daughter furnished $20,000, and the descedent furnished $60,000 to acquire the stock, costing $80,000. The $20,000 provided by the daughter was interest income earned from other property she originally received as a gift from her father. The stock had a date of death value of $100,000. What would be included in father's gross estate if he died first?

Expert Solution

Answer :-

$80,000

This is because the cost of acquisition in the hand of the father is $80,000 only.

That is,Cost of Acquisition = Stock value - Income earned as gift from father

= $100,000-$20,000

= $80,000

ekkarill92 answered 2 years ago

In the current year, Marah gives $20,000 cash to Sam, $60,000 of stock to Craig, and...

In the current year, Marah gives $20,000 cash to Sam, $60,000 of stock to Craig, and $100,000 of bonds to Lynn. In the same year, Marah’s husband, Bryan, gives $120,000 of land to Jerry. a. What are Marah and Bryan’s taxable gifts if they do not elect gift splitting? b. What are the couple’s taxable gifts assuming the couple elects gift splitting?

Journalize these transactions: Antex Co. issues 80,000 shares of common stock (par of $2) to acquire...

Journalize these transactions: Antex Co. issues 80,000 shares of common stock (par of $2) to acquire a patent. An independent appraiser determines that the value of patent is $320,000. The patent has a legal life 15yrs remaining and the co. assigns it a useful life of 10yrs, no residual value. After 2 years, an unexpected technological development leads to the determination of a recoverable amount of the patent of $198,000

Cash & M/S 30,000 Accruals 20,000 Receivables 70,000 Accounts Payable 60,000 Inventories 120,000 Notes Payable 80,000...

Cash & M/S 30,000 Accruals 20,000 Receivables 70,000 Accounts Payable 60,000 Inventories 120,000 Notes Payable 80,000 Fixed Assets 380,000 L-T Liabilities 140,000 Total Assets 600,000 Common Equity 300,000 Total 600,000 Annual Sales = $1,200,000 Net Income = $48,000 Cost of Goods Sold = $960,000 Number of Shares Outstanding = 30,000 What is the current ratio of the firm? What is the debt ratio of the firm? What is the total asset turnover ratio of the firm? What is the...

Balance Sheet Cash&MS- 30,000 Accruals- 20,000 Receivables- 70,000 Accounts Payable- 60,000 Inventories- 120,000 Notes Payable- 80,000...

Balance Sheet Cash&MS- 30,000 Accruals- 20,000 Receivables- 70,000 Accounts Payable- 60,000 Inventories- 120,000 Notes Payable- 80,000 Fixed Assets- 480,000 L-T Liabilities- 140,000 Total Assets= 700,000 Common Equity- 400,000 Annual Sales- 1,400,000 Cost of Goods Sold- 960,000 Net Income- 63,000 Number of Shares Outstanding- 30,000 What is the current ratio, debt ratio, total asset turnover ratio of the firm? What is the days sales outstanding (DSO) of the firm? (Use a 360-day year.) What is the profit margin of the firm?...

If you own $20,000 of stock A and $20,000 of stock B, and Stock A has...

If you own $20,000 of stock A and $20,000 of stock B, and Stock A has an expected return of 35% while stock B has an expected return of 15%, what is the expected return of the portfollio?

A business sells $ 60,000 and $ 80,000 worth of goods in January and February respectively....

A business sells $ 60,000 and $ 80,000 worth of goods in January and February respectively. The controller indicates that 50% of the customers pay their bills on a cash basis, 40% in 30 days and 10% in 60 days. During the month of January and February, the company purchased 30,000 and $50,000 worth of goods from suppliers respectively. The company’s policy is to pay 50% on a cash basis and the other 50% during the following 30 days. The...

Question 1 (1) An item of stock costing $60,000 was written down to its realizable value...

Question 1 (1) An item of stock costing $60,000 was written down to its realizable value of $35,000. (2) School fees paid to the proprietor's son was debited to the Drawings account. (3) $2,500 paid for a printer was written off as expense(instead of being capitalized). (4) Assets like inventory are valued in dollars, not units, for the financial statements. (5) Company reports revenue when it is earned instead of when the cash is collected. (6) Assets will normally be...

Question 1 (1) An item of stock costing $60,000 was written down to its realizable value...

Question 1 (1) An item of stock costing $60,000 was written down to its realizable value of $35,000. (2) School fees paid to the proprietor's son was debited to the Drawings account. (3) $2,500 paid for a printer was written off as expense(instead of being capitalized). (4) Assets like inventory are valued in dollars, not units, for the financial statements. (5) Company reports revenue when it is earned instead of when the cash is collected. (6) Assets will normally be...

Jim earned a salary of $60,000 in 2002 and $80,000 in 2007. The consumer price index...

Jim earned a salary of $60,000 in 2002 and $80,000 in 2007. The consumer price index was 177 in 2002 and 221.25 in 2007. Jim's 2002 salary in 2007 dollars is A. $85,000; thus, Jim's purchasing power decreased between 2002 and 2007. B. $85,000; thus, Jim's purchasing power increased between 2002 and 2007. C. $75,000; thus, Jim's purchasing power increased between 2002 and 2007. D. $75,000; thus, Jim's purchasing power decreased between 2002 and 2007. Assume an economy experienced a...

The capital accounts of Robert Jewell and Donald Kane have balances of $60,000 and $80,000 respectively....

The capital accounts of Robert Jewell and Donald Kane have balances of $60,000 and $80,000 respectively. James Abbey and George Bowman are to be admitted to the partnership. Abbey purchases one-third of Jewell's interest for $25,000 and one-fifth of Kane's interest for $20,000. Bowman contributes $40,000 cash to the partnership, for which he is to receive an ownership equity of $40,000. INSTRUCTIONS: (a) Present the entries in general journal form to record the admission to the partnership of (1) Abbey...

Question

Daughter furnished $20,000, and the descedent furnished $60,000 to acquire the stock, costing $80,000. The $20,000...

Solutions

Expert Solution

Related Solutions

In the current year, Marah gives $20,000 cash to Sam, $60,000 of stock to Craig, and...

Journalize these transactions: Antex Co. issues 80,000 shares of common stock (par of $2) to acquire...

Cash & M/S 30,000 Accruals 20,000 Receivables 70,000 Accounts Payable 60,000 Inventories 120,000 Notes Payable 80,000...

Balance Sheet Cash&MS- 30,000 Accruals- 20,000 Receivables- 70,000 Accounts Payable- 60,000 Inventories- 120,000 Notes Payable- 80,000...

If you own $20,000 of stock A and $20,000 of stock B, and Stock A has...

A business sells $ 60,000 and $ 80,000 worth of goods in January and February respectively....

Question 1 (1) An item of stock costing $60,000 was written down to its realizable value...

Question 1 (1) An item of stock costing $60,000 was written down to its realizable value...

Jim earned a salary of $60,000 in 2002 and $80,000 in 2007. The consumer price index...

The capital accounts of Robert Jewell and Donald Kane have balances of $60,000 and $80,000 respectively....