Reference no: EM13789155
You have been the Financial Adviser for Ken and Joan Hill for the last 3-years. You have asked them to stop by for an annual review. During the annual review you discover the following information:
Ken and Joan Hill gave $35,000 to their son for a down payment on a house in 2009.
Questions:
1. How much gift will be owed by Ken and Joan for giving the gift to their son?
2. How much income tax will be owed by their son?
3. List three advantages of making this gift.
4. You are the Financial Adviser for the Hill's. They did not ask you for advice before making this gift to their son. If Ken and Joan Hill had asked you for your expert advice, what would you have recommended?
To your surprise, Joan Hill is now deceased. Joan Hill had a $2,500,000 net worth at the time of her death in 2009. In addition, she had a $350,000 whole life policy with a $40,000 of accumulated cash value; her niece was designated as the beneficiary. She also had a $50,000 pension plan benefit.
Questions:
5. What was the value of Joan's gross estate?
6. How much of her estate is taxable?
7. How much estate tax will need to be paid?
8. How much of her estate must pass through probate?
9. What are the four different taxes that may be imposed on an estate?
|
Describe the components of the common body of tax law
: Describe the components of the common body of tax law (CBOTL). What role does the U.S. Congress play in creating the tax law? Briefly explain how a tax bill becomes a tax law.
|
|
Discuss the social media sites you are familiar with
: Complete the Option 2 Assignment that follows. Your responses to the questions below should be composed in complete sentences. Your Option 2 response should be a minimum of 300 words. 1. Discuss the social media sites you are familiar with and how yo..
|
|
Explain any treatment strategies
: Explain any treatment strategies
|
|
Implementation of the sarbanes-oxley act
: Accountants face a number of unique and precarious situations in their daily work. As a result of scandals and fraud in the financial world, numerous regulations and laws were enacted. One such influential regulation is the Sarbanes-Oxley Act, which ..
|
|
Value of joan gross estate
: What was the value of Joan's gross estate? How much of her estate is taxable?
|
|
Estimate the amount of a possible future contingency
: Many firms believe that it is very difficult to estimate the amount of a possible future contingency. Should a contingent liability be reported even when the dollar amount of the loss is not known? Should it be disclosed in the notes to financial sta..
|
|
The contribution margin ratio
: The contribution margin ratio is 25% for Grain Company and the break-even point in sales is $196,800. To obtain a target net operating income of $78,000, sales would have to be: (Do not round intermediate calculations.)
|
|
Select an article about medicine, invasive species, nature
: Select an article from a magazine or newspaper that has something in it that pertains to biology. This will serve as the "target article" for this assignment. For instance, you can select an article about medicine, invasive species, nature, conservat..
|
|
Traceable to the individual divisions
: Colasuonno Corporation has two divisions: the West Division and the East Division. The corporation's net operating income is $83,600. The West Division's divisional segment margin is $44,300 and the East Division's divisional segment margin is $168,3..
|