Reference no: EM132705

Question :

At the time of his death on September 2, 2012, Kenneth owned the subsequent assets:

Fair Market Value

City of Boston bonds      $2,500,000         

Stock in Brown Corporation         900,000               

Promissory note issued by Brad (Kenneth's son)               300,000               

In October 2012, the executor of Kenneth's estate received the subsequent: $120,000 interest on the City of Boston bonds ($10,000 accrued since September 2), and a $7,000 cash dividend on the Brown stock (date of record was September 3). The declaration date on the dividend was August 12. The $300,000 loan was made to Brad in late 2007, and he used the money to produce a very successful business. The note was forgiven by Kenneth in his will. What are the estate tax consequences of these transactions?

Show whether the items are included in or exclude from Kenneth's gross estate.

a. City of Boston bonds

b. Promissory note         

c. Stock in Brown Corporation   

d. Interest on City of Boston bonds        

The amount of Kenneth's gross estate is $ ?