Glenda age 8 has 4150 interest from a trust fund established by her grandfather

Glenda age 8 has 4150 interest from a trust fund

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33. Glenda, age 8, has $4,150 interest from a trust fund established by her grandfather several years ago. If her parents are in the 35 percent marginal tax bracket, what is Glenda’s tax liability?a. $1,085b. $823c. $750d. $415ANSWER b; $4,150 - $1,050 = $3,100 taxable income; ($1,050 x .1) + ($2,050 x .35) = $822.50LO 12.3REFERENCE TABLES REQUIREDDIFFICULTY: Moderate34. Glenda, age 8, has $4,150 interest from a trust fund established by her grandfather several years ago. If her parents are in the 35 percent marginal tax bracket, how much of Glenda’s income is taxed at the 35 percent rate?LO 12.3REFERENCE TABLES REQUIREDDIFFICULTY: Moderate35. When Shipley died, he owned $100,000 in bonds that he left to his church, a $400,000 house held in joint tenancy with right of survivorship with his brother, and a collection of antique automobiles valued at $1,300,000 that he left to his son. What are Shipley’s probate estate and his gross estate, respectively? DIFFICULTY: Hard
Chapter 12: Estates, Gifts, and Trusts 1936. What is the benefit(s) of a living trust?DIFFICULTY: Easy37.Which of the following does not apply to the estate tax in effect in 2017?a. The tax is assessed on the adjusted basis of the decedent’s estate.b. Taxable gifts are integrated with the estate value to determine the estate tax.c. The gift and estate tax rate schedules are the same.d. The unified credit applies to gifts and estates.ANSWERaLO 12.4DIFFICULTY: Easy38. When will an insurance policy on the decedent’s life be included in a decedent’s gross estate?DIFFICULTY: Moderate39.All of the following are deductions from the gross estate exceptDIFFICULTY: Easy40. The unified credit for 2017 gifts is equivalent to an exemption amount of:REFERENCE TABLES REQUIREDDIFFICULTY: Easy41. The alternate valuation date is:
20 Taxation for Decision Makers Test Banka. 3 months after the date of deathb. 6 months after the date of deathc. 9 months after the date of deathd. 12 months after the date of deathANSWERbLO 12.4 DIFFICULTY: Easy

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