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Among the assets included in Taylor's gross estate are the following.

Among the assets included in Taylor’s gross estate are the following.

Fair Market Value

Date of Death Six Months After
Date of Death
Stock in Grebe Corporation
Stock in Rail Corporation
Office building $4,000,000
900,000 $3,800,000

Three months after Taylor’s death, her executor sells the Rail stock for $840,000.

a. What is the amount of Taylor’s gross estate if date of death value is used?

b. What is the amount of Taylor’s gross estate if the alternate valuation date is elected?

c. Suppose the accrued rents on the office building are as follows: $80,000 (date of death) and $75,000 (six months after death). How does this change the answers in parts a. and b.?

d. Suppose all of Taylor’s assets pass to her surviving spouse. Does this have any impact on the choice of valuation date? Explain.

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