Dustin owns all of the stock of Gold Corporation which includes both common and preferred shares. The preferred stock is noncumulative, has no redemption date, and possesses no liquidation preference. In 1995, Dustin makes a gift to his adult children of all of the common stock. He dies in 2016 still owning the preferred stock. The value of the Gold stock on the relevant dates is:
1995 2016
Preferred $ 400,000 $ 500,000
Common 3,000,000 5,000,000
One of the tax consequences of this estate freeze is:
a. Dustin's gross estate includes $0 as to the stock.
b. Dustin's gross estate includes $5,000,000 as to the stock.
c. Dustin made a gift of $400,000 in 1995.
d. Dustin made a gift of $3,400,000 in 1995.
e. None of the above is correct.
d
RATIONALE: Dustin's gross estate includes $500,000 as to the stock. He made a gift of $3,400,000 in 1995.
You might also like to view...
According to the dynamic process model, two different types of expectations have opposite effects on perceptions of service quality. One of these is that ________
A) increasing customer expectations of what the firm will deliver improve the perceptions of overall service quality B) increasing customer expectations of what the firm will deliver decrease the perceptions of overall service quality C) decreasing customer expectations of what the firm should deliver decrease the perceptions of overall service quality D) decreasing customer expectations of what the firm will deliver improve the perceptions of overall service quality E) increasing customer expectations of what the firm should deliver improve the perceptions of overall service quality
A supernet mask works ________ a subnet mask
A) but not as well as B) in the very same way as C) in just the opposite way of D) twice as well as