PFIN Online, 1 term (6 months) Printed Access Card for Billingsley/Gitman/Joehnk's PFIN 6
6th Edition
ISBN: 9781337118026
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Question
Chapter 15, Problem 7FPE
Summary Introduction
To determine: Federal transfer tax on person A’s estate.
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On January 1, 2018, Roque established a trust fund for the benefit of his dear friend,
Panelo. Mr. Roque appointed Atty. Jeoff as the trustee. The property transferred to the
trust is a piece of land with a dormitory earning rental income.
During the year, the trust earned P80,000,000 revenues and incurred expenses of
P30,000,000. Out of the trust's income, Atty. Jeoff gave Mr. Panelo P25,000,000 cash. In
the same year, Mr. Panelo earned compensation income of P5,000,000.
The tax due of the trust is
O Nil
O P10,500,000
O P8,750,000
O P17,500,000
When Jacob Kohler died unmarried in 2015, he left an estate valued at 7,900,000. His trust directed distribution as follows: $19,000 to the local hospital, $150,000 to his alma mater, and the remainder to his 3 children. Death-related costs and expenses were $15,100 for funeral, $30,000 paid to attorneys, $6,500 paid to accountants, and $35,000 paid to the trustee of his living trust. In addition, debts of $115,000. Calculate the federal estate tax due on his estate.
When Jacob Kohler died unmarried in 2015, he left an estate valued at $7,900,000. His trust directed distribution as follows: $20,000 to the local hospital, $170,000 to his alma mater, and the remainder to his three adult children. Death-related costs and expenses were $15,800 for funeral expenses, $50,000 paid to attorneys, $3,500 paid to accountants, and $35,000 paid to the trustee of his living trust. In addition, there were debts of $80,000. Use Exhibit 15.7 and Exhibit 15.8 to calculate the federal estate tax due on his estate. Round your answer to the nearest whole dollar.
Chapter 15 Solutions
PFIN Online, 1 term (6 months) Printed Access Card for Billingsley/Gitman/Joehnk's PFIN 6
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