HS-330

Which of the following statements concerning the methods of valuing a closely held business for federal estate tax purposes is (are) correct? l. The capitalization-of-adjusted-earnings method uses a capitalization rate that varies inversely with the degree of risk and rate of return. II. The adjusted-book value method involves adjusting the...

Which of the following statements concerning property is correct?A . A mortgage on real estate is real property.B . A tree growing on land is tangible personal property.C . Any property that is not real property is personal property.D . A bond issue secured solely by a corporation asset is...

The Decedent, T, died this year. The facts concerning T estate are: Gross estate $2,700,000 Marital deduction 900,000 Charitable deduction 110,000 Gifts made after 1976 130,000 State death taxes payable 165,000 What is T taxable estate?A . $1,285,000B . $1,395,000C . $1,525,000D . $1,655,000View AnswerAnswer: C

Which of the following statements concerning the joint tenancy with right of survivorship form of real property ownership is (are) correct? l. The property is part of the probate estate of the first tenant to die. ll. An owner can sell his interest in the property at any time without...

A man recently died with only probate assets. Under the terms of his will, he left his entire probate estate out right to his wife. The following are relevant facts concerning the estate: Gross estate $2,400,000 Estate administration expenses 85,000 Debts of decedent 100,000 Allowable funeral expenses 10,000 The amount...

Which of the following statements concerning property ownership by a married couple residing in a community-property state is correct?A . All property owned by the couple is community property.B . Community property loses its identity when a couple moves from a community-property state to a common-law state.C . Property inherited...

A number of states have passed statutes governing “living wills.” Which of the following statements concerning a living will is (are) correct? l. A living will is an alternative to an inter vivos trust under certain circumstances. ll. A living will is an oral will made by the testator during...

Which of the following statements concerning pooled-income funds are correct? l. The fund contains commingled donations from many sources. ll. A decedent donation purchases units in the fund which generate income that is paid at least annually to a charity.A . l onlyB . II onlyC . Both l and...

A man died in February of this year. Last year, when he learned that he had a terminal illness, he immediately made the following gifts and filed the required gift tax return: Fair Market Value Gift of listed stock to a qualified charity $100,000 Gift of listed bonds to his...

Which of the following statements concerning the generation-skipping transfer tax (GSTT) is (are) correct? I. An annual exclusion against GSTT will shelter gifts by a grandparent to a trust benefiting multiple grandchildren. II. Tuition payments made directly by a grandparent to a university for a grandchild’s education are exempt from...