Net ird and the ird reported on the return for the period

Assignment Help Financial Accounting

Reference no: EM133282

Question :

Dana Dodson died 31^st October, 2009, with a gross estate of $6.7 million, debts of $200,000, and a taxable estate of $6.5 million. Dana ended no adjusted taxable gifts. All of her property passed under her will to her son, Daniel Dodson. The estate selects a June 30 year-end. Its receipts, gains, disbursements for the period ended June 30, 2011, were as follows:

Dividend income $27,000

Interest income from corporate bonds 18,000

Interest income from tax-exempt bonds 9,000

Gain on sale of land 10,000

Executor's fee (charged to principal) 4,000

Distribution to Daniel Dodson -0- Of the $27,000 dividends gets in the estate's first tax year, $7,000 were declared October 4, 2009, with a record date of October 25 and a payment date of November 4, 2009. The corporate bonds pay interest each 31^st August and February 28. The estate collected $18,000 corporate bond interest in February 2010 and February 2011. The tax-exempt bonds pay interest each December 31 and June 30. The estate collected $4,500 in December 2009 and 2010 and $4,500 in June 2010 and 2011 from the tax-exempt bonds. Dana, a cash basis taxpayer, sold land in 2008 for a total profit of $60,000 and used installment reporting. She collected principal in 2008 and 2009 and reported profit of $30,000 on her 2008 return and $10,000 on her 2009 return. The estate collected additional principal in March 2010 and the remaining principal payment in March 2011. The profit attributable to the March 2010 and March 2011 principal collections is $10,000 per tax year. Ignore interest on the sale.

Determine the following:

a. Deductible executor's fee.

b. Net IRD and the IRD reported on the return for the period ended June 30, 2011.

c. Total Sec. 691(c) deduction if none of the debts are DRD.

d. Section 691(c) deduction deductible on the estate's income tax return for the period ended June 30, 2011.

e. Taxable income of the estate for its tax year ended June 30, 2011.

f. Marginal income tax rate for the estate for its tax year ended June 30, 2011.

Reference no: EM133282

Questions Cloud

Describe the impacts of global climate change on migratory : Describe the impacts of global climate change on migratory wild species and suggest priority solutions. Give an overview of global change from the African perspective, emphasizing on the key challenges. Discuss the main components of a Global En..

Evaluate the pete''s gross income for calendar year : Evaluate the Pete's gross income for calendar year 2013?

Determine the basis for the shares sold : Determine the basis for the shares sold consider the FIFO cost method?

Evaluate the equivalent units of production : Evaluate the equivalent units of production with respect to direct materials and direct labor. Evaluate both the direct labor cost and the direct materials cost per equivalent unit.

Net ird and the ird reported on the return for the period : Deductible executor's fee. Net IRD and the IRD reported on the return for the period ended June 30, 2011.

Simple random sampling : Simple random sampling Systematic sampling Cluster sampling Elaborate on the statistical efficiency of each of the sampling methods

Show the role accounting plays in this situation : Recognize who, other than O'Conner, could be harmed by this theft. In what ways would they be harmed? Show the role accounting plays in this situation.

Describe the rules that apply to each property transaction : Describe the rules that apply to each property transaction

The case of the missing cookies : Describe how you know that there is no such path, then show a path in which the camp director MAY retrace her steps.

User Account

All Pages