Homework Assignment Chapter 13

Homework Assignment Chapter 13 - Homework Assignment...

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Homework Assignment Chapter 13 C: 13-34 a. The valuation of the 4,000 shares of Highline Corporation is calculated as follows: 4000 x (55/2) = $110,000 b. Life Insurance value = $600,000 C. Life Insurance Policy value = Policy’s Interpolated Terminal Reserve + Unexpired Premium $14,000 + 920 = $14,920 d. Beach cottage is valued at the FMV of $175,000. C: 13-37 a. What amount was included in Val’s gross estate as a result of the 2007 gift? Because Val gave the gift prior to her death within the three year period, according to Sec 2037 the $400,000 life insurance policy would be included in the gross estate. b. What amount was included in Val’s gross estate if the property given was land instead of a life insurance policy? According to Sec 2036 because the property was land and given within three years of Val’s death no amount would be included in the gross estate. c. Refer to part a. What amount would have been included in Val’s gross estate if she instead gave Ray the policy on April 30, 2006? Because the policy was given to Roy in 2006 the policy amount would not be
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This note was uploaded on 10/22/2011 for the course ACCOUNTING ACC565 taught by Professor Lindachess during the Spring '10 term at Strayer.

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