Description of this paper

ACC 561 accounting exercises




Question;41. LO.5 Using property she;inherited, Myrna makes a gift of $6.2 million to her adult daughter, Doris. The;gift takes place in 2013. Neither Myrna nor her husband, Greg, have made any;prior taxable gifts. Determine the gift tax liability if;a. The ? 2513 election to split gifts is;not made.;b. The ? 2513 election to split gifts is;made.;c. What are the tax savings from making;the election?51. LO.6, 7 In 2000, Alan purchases;a commercial single premium annuity. Under the terms of the policy, Alan is to;receive $120,000 annually for life. If Alan predeceases his wife, Katelyn, she;is to receive $60,000 annually for life. Alan dies first at a time when the;value of the survivorship feature is $900,000.a. How much, if any, of the annuity is;included in Alan's gross estate? Taxable estate?b. Would the answers to part (a) change if;the money Alan used to purchase the annuity was community property? Explain.52. LO.6 At the time of his death;on July 9, 2013, Aiden was involved in the following real estate. Fair;Market Value (on July 9, 2013)Apartment;building$2,100,000Tree;farm 1,500,000Pastureland 750,000Residence 900,000 The;apartment building was purchased by Chloe, Aiden's mother, and is owned in a;joint tenancy with her. The tree farm and pastureland were gifts from Chloe to;Aiden and his two sisters. The tree farm is held in joint tenancy, and the;pastureland is owned as tenants in common. Aiden purchased the residence and;owns it with his wife as tenants by the entirety. How much is included in;Aiden's gross estate based on the following assumptions?a. Aiden dies first and is survived by;Chloe, his sisters, and his wife.b. Aiden dies after Chloe, but before his;sisters and his wife.c. Aiden dies after Chloe and his sisters;but before his wife.;d. Aiden dies last (i.e., he survives;Chloe, his sisters, and his wife).59. LO.8 On the advice of her;estate planner, Grace made taxable gifts of $5 million in 2011. Grace dies in;late 2013 leaving a taxable estate of $1.1 million. Grace never made any;taxable gifts before 2011. Determine her estate tax liability.="msonormal">="msonormal">61. LO.9 In 2013, Loretta makes a;taxable gift of $2 million to her granddaughter, Bertha. Presuming that Loretta;used up both her unified transfer tax credit and her generation-skipping;transfer tax credit, how much tax does Loretta owe as a result of the transfer?Chapter 4: Case;Problems 1 and 2 on page 145.1.;Emmett Tomas, a;bachelor, makes the following testamentary gifts: a house valued at $110,000 to;his best friend, Roxanne Rudin, furniture and household appliances worth $8,000;to Roxanne, a television and stereo system worth $2,500 to his nephew, Roland;Tomas, a Toyota Camry worth $15,000 to his only brother, William Tomas, a gift;of $10,000 to his sister-in-law, Sally Tomas, to be paid out of his savings;account in Metro State Bank in his hometown, a gift of $5,000 to his church;and a residue gift of his remaining property, which is all personal property worth;$22,000, to the American Cancer Society.A.;Place each gift in the;appropriate disposition category.Specific deviseSpecific legacyResiduary legacyGeneral legacyDemonstrative legacyB.;After his death;Emmett?s expenses, debts, and taxes amount to $50,000 and none of his assets;pass outside his will as interstate property. Explain how Emmett?s testamentary;gifts are used to pay his obligations according to the abatement process.C.;If William dies before;Emmett and no successor beneficiary is named;to receive the Toyota before Emmett dies, what happens to this gift and;how does it abate?D.;If the law in Emmett?s;domiciliary state ?abates? a decendent?s property within each disposition;category and uses the property for payment of debts on a prorated basis, how;much, if any. Of the specific legacies does each beneficiary get to keep after;the $50,000 obligation is paid? See Matter of Estate of Wales, 223 Mont.515,727;P.2d 536 (1986)2.;The following diagram;shows the interest each descendants are living except as noted.A.;Is the distribution;method per capita or per stirpes?B.;Explain how the shares;of Abel and Barb are determined?C.;Eli, Fred, and Gary do;not receive an interest. Why not? ExplainD.;Explain the calculation;of the shares of Kathy and Lee.E.;If Debbie was married;would her surviving husband receive an interest? Explain.;="msonormal">="msonormal">="msonormal">


Paper#40864 | Written in 18-Jul-2015

Price : $27