Gift for federal gift tax purposes

Assignment Help Financial Management
Reference no: EM131353224

1. Which of the following statements concerning executors is correct?

a) An executor can be given broad and discretionary powers with respect to the management of estate assets.

b) An executor is chosen by the beneficiary of a will shortly after the decedent’s death.

c) An executor must be an individual rather than an entity or institution

d) An executor is answerable only to the beneficiary and not to the court having jurisdiction over the probate of the estate.

2. Charles Kuralt purchased a joint life annuity for himself and his paramour from an insurance company. Assuming Charles contributed the entire purchase price, how will the annuity be valued at his death for purposes of determining his gross estate?

a) at the original cost of the joint life annuity

b) at the cost of a single life annuity on Charles’s life at the date of his death

c) at the cost of a single life annuity for his paramour at the time the original annuity was purchased

d) at the cost of a single life annuity for his paramour at the time of his death

3. Which of the following powers would result in the property subject to the power being included in a decedent’s estate?

a) the power to add to the corpus

b) the power to change beneficiaries

c) the power to direct issuance of voting proxies

d) the power to direct the reinvestment of funds

4. Which of the following is a gift for federal gift tax purposes?

a) Without compensation a carpenter builds a chicken shed for a neighbor

b) A valuable oil painting owned by a father is delivered to his son to be displayed at the son’s residence with a provision that the painting is to be returned to the father on demand.

c) A father tells his son that he need not pay interest on a $50,000 interest-bearing note evidencing a loan that the father made to his son.

d) A mother promises to give her son her new car as soon as the odometer reads 50,000 miles.

Reference no: EM131353224

Questions Cloud

What is average investment in accounts receivable : The Bates Corporation has annual credit sales of $35 million. The average collection period is 37 days. What is the average investment in accounts receivable as shown on the balance sheet?
What dimensions would a proportionality constant need : Make a list of distribution functions commonly used in the social sciences (e.g., distribution of families with respect to income). In each case, state whether the variable whose distribution is described is discrete or continuous.
Write a procedural email message to employees : Write a procedural email message to employees reminding them of standard operating procedures or organizational changes that take the form of step-by-step instructions
Targeting rhd molecules on fetal red blood cells : 1. Any future children Padme has with Anakin will develop erythroblastosis fetalis. 2. Erythroblastosis fetalis is typically caused by maternal IgM antibodies targeting RhD molecules on fetal red blood cells.
Gift for federal gift tax purposes : Which of the following statements concerning executors is correct? Which of the following powers would result in the property subject to the power being included in a decedent’s estate? Which of the following is a gift for federal gift tax purposes?
Describe various kind of documentation that will be required : Describe the various kinds of documentation that will be required to support the future system operation, including both user and technical documentation.
Probably the most active forward market : The balanced scorecard: Probably the most active forward market is for _____.
What is the slack time for each individual activity : Roger Ginde is developing a program in supply chain management certification for managers. What is the total project completion time? What is the slack time for each individual activity
Explain the test environment including hardware requirements : Develop a data conversion plan that describes the process of migrating existing data to the testing platform. Describe the test environment, including hardware requirements and the personnel who will participate in user acceptance testing.

Reviews

Write a Review

 

Financial Management Questions & Answers

  Deemed to be extinguished and treated as paid

John owns real estate with a fair market value of $1 million in which he has a basis of $250,000. In 2005, John sold the property to his son, Junior, for $1 million, subject to an installment note. Junior must pay the $1 million plus interest over 5 ..

  What is the average accounting return

A project has an initial cost of $42,000 and a four-year life. The company uses straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $1,400, $3,600, $4,000, and $4,500 a year fo..

  Non-dividend-paying stock-binomial trees

Consider a 7-month $110 American put option on a non-dividend-paying stock. Currently, the stock price is $100 and its volatility is 40%. The risk-free rate is 3% per annum. Price the put using a 10-step binomial trees.

  What is the company total book value-market value

Jiminy’s Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon rate of 8 percent 3 years ago. The bond currently sells for 96 percent of its face value. The company’s tax rate is 35 percent. The book value of the debt issue is ..

  What type of stock split does the firm need

A stock currently sells for $8.40 a share. What type of stock split does the firm need to do if it wants to increase the price so that it trades around $25 a share?

  What are the primary purposes of the bankruptcy code

What are the primary purposes of the Bankruptcy Code? Describe the creditor actions that are automatically held in abeyance when the debtor files a bankruptcy petition. When is a debtor allowed to void liens on his properties? What type of liens can ..

  Which it will finance through additional bond sales

Suppose XG is considering an expansion which it will finance through additional bond sales. Current outstanding XG bonds are selling for $1,148.77. These have a face value of $1,000, and a coupon of 8% and 10 years to maturity. If interest is paid se..

  How much are the equal installments

On December 31, George Smith buys a building for $175,000, paying 20 percent down and agreeing to pay the balance in 20 equal annual installments that are to include principal plus 15 percent compound interest on the declining balance.- How much a..

  The fixed asset falls into the three-year MACRS class

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.73 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,090,000 in annual sale..

  With an annual compound interest rate

Jason has been making equal annual payments of $7,500 to repay a college loan. He has just made an annual payment and now wants to pay off the rest of the loan immediately. He has eight payments remaining. With an annual compound interest rate of 6 p..

  Find the outstanding loan balance at end of the second year

A years at 6% convertible quarterly. Showing your work using actuarial notation, find the outstanding loan balance at the end of the second year using loan of $1000 is being repaid with quarterly payments at the end of each quarter for five

  Discuss the concept of value-does return affect value

Discuss the concept of value. Define it, give examples. What is return? Are there competing definitions of return? What are they? Which is the best? What is risk in Finance? What determines the coe? How does coe affect value if at all? Why? Does retu..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd