Walt dies intestate (i.e., without a will) in the current year with a gross estate valued at $4,000,000 . Under applicable state law, Walt's property passes to Kelly or to Belle, in that order. Kelly has an estimated net worth of $3,000,000 while Belle's is zero. From a tax planning standpoint, what course of action might be advisable?
This might be a good situation to make use of ยง 2518 . Thus, Kelly could disclaim some of the $4,000,000 inheritance and, in effect, pass it to Belle free of any transfer tax to Kelly (i.e., estate or gift tax). This presumes that Kelly would otherwise transfer some of her wealth to Belle in the future in a taxable transfer.
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Which of the following are among the pitfalls to avoid when pursuing a low-cost provider strategy?
a. reducing costs in a way that rivals can easily replicate b. focusing insufficiently on cost reduction c. becoming overly concerned about cost reduction d. focusing too much on cutting prices
Message Company uses the indirect method to prepare its statement of cash flows
Refer to the following portion of the comparative balance sheet: Message Company Comparative Balance Sheet December 31, 2017 and 2016 2016 2015 Increase/(Decrease) Common Stock $18,000 $12,400 $5,600 Retained Earnings 113,000 80,000 33,000 Treasury Stock (8,000 ) (5,400 ) (2,600 ) Total Equity $123,000 $87,000 $36,000 Note: 1. There was no retirement of stock during the year. 2. There were no sales of treasury stock during the year. Which of the following statements is correct? A) There was zero net cash flow from transactions involving Common Stock. B) There was a negative cash flow of $5,600 from the issuance of Common Stock. C) There was a positive cash flow of $5,600 from the issuance of Common Stock. D) There was positive cash flow of $18,000 from issuance of Common Stock.