Net federal estate tax payable

Assignment Help Finance Basics
Reference no: EM131041177

A married man died this year leaving a gross estate of $2,750,000. Some additional facts concerning his estate are:

* Administration expenses and debts $ 150,000

* Marital deduction 750,000

* Applicable credit amount (2005) 555,800

* Applicable exclusion amount (2005) 1,500,000

* State death taxes payable 22,200

Under the Unified Rate Schedule for computing estate taxes if the amount with respect to which the tentative tax to be computed is over $1,000,000 but not over $1,250,000, the tentative tax is $345,800, plus 41 percent of the excess of such amount over $1,000,000. If the amount is over $1,250,000 but not over $1,500,000, the tentative tax is then $448,300, plus 43 percent of the excess of such amount over $1,250,000. If the amount is over $1,500,000 but not over $2,000,000 the tentative tax is then $555,800 plus 45% of the excess of such amount over $1,500,000. Based on these facts, the net federal estate tax payable is

A. $163,710

B. 0

C. $151.490

D. $147,510

Need full calculation and explanation

Reference no: EM131041177

Questions Cloud

Determining the effective interest rate : The insurance company will pay out the proceeds of this policy to you in 10 equal payments, where the first payment to be made one year after the policy matures. If the effective interest rate remains at 8.16 percent, how much will you receive dur..
Total real rate of return on investment : Suppose you bought a 4.6% annually coupon bond one year ago for $930. The bond sells for $955 today. A) assuming $1000 face value, what was your total dollar return in this investment over the past year
Detailed explanation of proposed solution : Description of current problem, issue, or deficit requiring a change. Hint: If you are proposing a change in current policy, process, or procedure(s) when delivering patient care, describe first the current policy, process, or procedure as a basel..
Shares of the sugarcooky corp : Randal Flapjack is a retired short-order cook living on a fixed income in the state of Utopia where all financial markets are perfectly efficient. Randal has 20,000 shares of the Sugarcooky Corp.,which pays an annualized dividend of $1.00 per shar..
Net federal estate tax payable : If the amount is over $1,500,000 but not over $2,000,000 the tentative tax is then $555,800 plus 45% of the excess of such amount over $1,500,000. Based on these facts, the net federal estate tax payable is
What is your process for assessing the risks : You have scheduled a risk assessment meeting for later this week. Create a pre read document for the meeting participants that will walk them through how you will run the meeting and what they should prepare in advance.
What is the annual dividend : a) What is the annual dividend? b) What was the closing price for this stock that appeared in yesterdays paper  c) If the company currently has 19 million shares of stock outstanding what was net income for the most recent four quarters?
What are the different performance appraisal methods : What are the different performance appraisal methods? providing fair and reliable ways of differentiating employees. targeting and rewarding those who most deserve it
Purchasing power of investment : If you require a real growth in the purchasing power of your investment of 8%, and you expect the rate of inflation over the next year to be 3%, what is the lowest nominal return that you would be satisfied with? (exact rate, not approximation)

Reviews

Write a Review

 

Finance Basics Questions & Answers

  By how much would change in the capital structure improve

However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE?

  Financial analysis of dpr construction inc

The Final Project will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a repo..

  Making monthly deposits into a savings account

Julie wishes to begin making monthly deposits into a savings account which earns 5% interest annually. If she intends to have saved $8,500 by the end of 3 years, how much must she deposit each month?

  Fund management simulation project

FUND MANAGEMENT SIMULATION PROJECT

  The firm has a bond issue outstanding with 15 years to

due to a number of lawsuits related to toxic wastes a major chemical manufacturer has recently experienced a market

  The rate of inflation for the next 12 months

The rate of inflation for the next 12 months (t=1) is expected to be 1.4 percent; it is expected to be 1.8 percent the following year (t=2); and 2.0 percent the following year (t=3).Assume that the real risk-free rate is 3 percent for all matu..

  Draw diagram of interrelationship of budget in master budget

Prepare a diagram of the interrelationships of the budgets in the master budget. Indicate whether each budget is an operating or a financial budget.

  If sales in 2010 were 12 million sales in 2011 were 13

the robinson company has the following current assets and current liabilities for these two years.nbsp20102011cash and

  Define which one of the following statements is correct

Which one of the following statements is correct, all else held constant?

  Why does money have a time value

Why does money have a time value? Can you provide at least one real-life scenario in which you can apply the concept of "time value of money?"

  What is the dollar amount of bad debt losses under the

1. what is the dollar amount of bad debt losses under the current policy? what would be the expected losses under the

  If the management team decides to make the shift from

if the management team decides to make the shift from catalogs to the web what recommendations can you make concerning

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