What if anything is includible in dan estate

Assignment Help Accounting Basics
Reference no: EM13523871

Que 1) In the year 2003, Dan entered into the following contract with an annuity company: Dan would pay the company a single premium of $1,000,000 on the date of the contract, and, in exchange, beginning in the year 2008, the company would pay Dan $10,000 a month for his life, and upon his death, $10,000 a month to his wife, Wendy, for her life. In 2006, Dan died.
a. What if anything is includible in Dan's estate?
b. Would the amount includible change if the contract was made with a life insurance company?
c. What if Wendy paid one-half of the premium?
d. What if Dan's employer paid one-half of the premium?


Que 2) Daisy takes out an insurance policy on her own life. Daisy designated her eldest child as the beneficiary. Daisy has come to you for advice with respect to two issues relating to this policy. First she wants to know if she died today, would the proceeds of the policy be includible in her estate. Second, if proceeds would be includible, she would like to know if there is any action she can take to prevent inclusion. What advice would you give Daisy?

Reference no: EM13523871

Questions Cloud

The operations of tony lobianco company : Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $10,164 in cash for similar equipment used in the operations of Tony LoBianco Company. The following information pertains to the exchange.
Explain potassium hydroxide and magnesium sulfate : Can someone please explain the chemistry of lidocaine synthesis to me. We made lidocaine in the lab and used 2,6 dimethylaniline, glacial acetic acid, chloracetyl chloride, sodium acetate, toluene, diethtylamine, hexane, HCL, potassium hydroxide a..
Find what is the net charge of all these electrons : water has a mass per mole of 18.0 g/mol, and each water molecule (H20) has 10 electrons. what is the net charge of all these electrons
Define the annual production of zinc sulfide : The annual production of zinc sulfide (ZnS) is 5.5e4 tons. Estimate the number of tons of SO2 produced by roasting it to extract zinc metal.
What if anything is includible in dan estate : Daisy takes out an insurance policy on her own life. Daisy designated her eldest child as the beneficiary. Daisy has come to you for advice with respect to two issues relating to this policy. First she wants to know if she died today, would the..
Explain agno3 solution is mixed with nabr solution : The Ksp for AgBr is 4.1 X 10-13. Will a precipitate form if 25 ml of 3.45 X 10-8 M AgNO3 solution is mixed with 25 ml of 4.65 X 10-5 M NaBr solution
Obtain the magnitudes of the net force acting on electron : An electron is a subatomic particle (m = 9.11 x 10-31 kg) that is subject to electric forces. obtain the magnitudes of the net force acting on electron
Find how long does the journey take according to cosmic ray : A cosmic ray travels 60km through the earth's atmosphere in 450us , How long does the journey take according to the cosmic ray
Explain solutes is soluble or insoluble in water : Based on the "like dissolves like" rule, predict whether each of the following solutes is soluble or insoluble in water

Reviews

Write a Review

Accounting Basics Questions & Answers

  Explain the three main components of stl explain the

what are the three main components of the stl?what is the difference between an stl container and an stl iterator?what

  Cost of goods manufactured for a period determined

A manufacturing company makes the products that it sells. Briefly identify and define the cost elements that are incurred in making a product. After product cost elements are identified, how is the cost of goods manufactured for a period determine..

  Computing actual price paid for gallon of direct material

If a review of Courtney's accounting records at the end of the period disclosed a material price variance of $5,000U and a material quantity variance of $3,000F, determine the actual price paid for a gallon of direct material.

  Fast delivery is a small company that transports business

fast delivery is a small company that transports business packages between new york and chicago. it operates a fleet of

  What exactly is sox

In terms of the question above, do you think SOX has achieved or approached the desired effect within the accounting and financial world? Please explain why or why not.

  Legal services incrueed during company organization

Prepare journal entries to record, Jan. 10 sold 102,000 shares of commone stock for $8 cash per share. Jan 15 Exchanged 10,000 shares of common stock for equipment with a market value of $80,000. Feb. 1 Exchanged 500 shares of common stock for $3,..

  Characteristics of victim in personal injury

What are some of the characteristics of a victim in a personal injury case that might impact the calculation of economic damages?

  What amount of interest income

What amount of interest income should be included in Moor's 2011 income statement (the second year of the contract)?

  Which of the following accounts would not appear on a

which of the following accounts would not appear on a balance sheet?equipmentinterest payableinterest revenueretained

  How much is the cost per machine

Beginning work in process totaled $15,000, and the ending balance is $9,000. During the year, the company completed 40 machines. How much is the cost per machine?

  Declared semiannual dividends of 140 on 35000 shares of

declared semiannual dividends of 1.40 on 35000 shares of preferred stock and 0.09 on the common stock to stockholders

  Primary operating expenses

the primary operating expenses (such as employee wages, utilities, and repairs and maintenance) for the year were $66347000 with $60200000 paid in cash and the rest on account

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