Required information Skip to question [The following information applies to the questions displayed below.] Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his spouse, Kaffie, and the real estate to a church, The First Church of Methodology. The remainder of Tom's assets were to be placed in trust for three children. Tom's estate consisted of the following: Assets: Personal assets $ 1,020,000 Cash and stock 25,900,000 Intangible assets (film rights) 81,000,000 Real estate 16,900,000 $ 124,820,000 Liabilities: Mortgage $ 5,100,000 Other liabilities 6,000,000 $ 11,100,000 a. Tom made a taxable gift of $7.00 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit 25-2.) Note: Enter your answers in dollars, not millions of dollars.
Required information Skip to question [The following information applies to the questions displayed below.] Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his spouse, Kaffie, and the real estate to a church, The First Church of Methodology. The remainder of Tom's assets were to be placed in trust for three children. Tom's estate consisted of the following: Assets: Personal assets $ 1,020,000 Cash and stock 25,900,000 Intangible assets (film rights) 81,000,000 Real estate 16,900,000 $ 124,820,000 Liabilities: Mortgage $ 5,100,000 Other liabilities 6,000,000 $ 11,100,000 a. Tom made a taxable gift of $7.00 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit 25-2.) Note: Enter your answers in dollars, not millions of dollars.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[The following information applies to the questions displayed below.]
Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his spouse, Kaffie, and the real estate to a church, The First Church of Methodology. The remainder of Tom's assets were to be placed in trust for three children. Tom's estate consisted of the following:
| Assets: | |
|---|---|
| Personal assets | $ 1,020,000 |
| Cash and stock | 25,900,000 |
| Intangible assets (film rights) | 81,000,000 |
| Real estate | 16,900,000 |
| $ 124,820,000 | |
| Liabilities: | |
| Mortgage | $ 5,100,000 |
| Other liabilities | 6,000,000 |
| $ 11,100,000 |
a. Tom made a taxable gift of $7.00 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit 25-2.)
Note: Enter your answers in dollars, not millions of dollars.
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