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Question - Rona Grant gifted $50,000 of stock to her grandson, Rick, in 1996. The stock pays $5,000 of dividends annually. In 1998, Rona and Rick purchased unimproved real estate as joint tenants with the right of survivorship for $210,000, paying $10,000 down and executing a nonrecourse note for $200,000. Rona and Rick paid interest and $10,000 of principal each year for ten years. Rick used the dividends received on the stock to make his initial down payment and paid the subsequent note payments with dividends and $5,000 from wages. Rona died in the current year when the property was worth $640,000. What amount of the $640,000 is excluded from Rona's estate?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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