What is the value of the remainder interest received

Assignment Help Other Subject

Reference no: EM131354606

1. Table 2000 CM is based on 2000 Census data. It begins with 100,000 live births and shows how many are still alive at various ages (up to 110 years of age). The "CM" stands for cumulative mortality. These raw statistics can be used for a number of purposes. Answer each of the following independent questions relating to Table 2000 CM

A. 87,595

B. 60.6473%

C. 100%

D. 12.405%

E. 0%

F. 39.3527%

G. None of the other answers is correct

H. 87.595%

I. 34.471%

For each question below choose from A to I above

According to Table 2000 CM, starging with 100,000 live births, how many are still living at age 60?

According to Table 2000 CM, starging with 100,000 live births, what is the statistical probability of being alive at age 60?

According to Table 2000 CM, starging with 100,000 live births, what is the statistical probability of having died by age 60?

According to Table 2000 CM, what is the statistical probability of someone age 60 living to age 85?

2. For each of the following independent situations, give the answer requested. These computations are presented in Chapter 2

A. $324,436

B. $811,090

C. According to Table S (3.2% AFR), $1,000,000 is not sufficient to fund an annuity of $100,000. Accordingly, the value of the remainder interest is zero.

D. $633,370

A. $324,436

B. $811,090

C. According to Table S (3.2% AFR), $1,000,000 is not sufficient to fund an annuity of $100,000. Accordingly, the value of the remainder interest is zero.

D. $633,370

E. $471,510

F. $124,080

G. $675,564

H. $280,290

I. $188,910

J. $528,490

K. None of the other answers is correct

For each question below choose from A to K above

Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for a period of 10 years, after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the income interest received by Kelley?

Jacob placed into trust assets worth $1,000,000. Kelley is to receive from this trust an annual annuity of $100,000 for a period of 10 years, after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the income interest received by Kelley?

Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for as long as she lives (Kelley's age is 65), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the income interest received by Kelley?

Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for as long as she lives (Kelley's age is 45), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the income interest received by Kelley? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard.

Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this for as long as she lives (Kelley's age is 75), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the income interest received by Kelley? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard

Jacob placed into trust assets worth $1,000,000. Kelley is to receive from this trust an annual annuity of $100,000 for as long as she lives (Kelley's age is 45), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the remainder interest received by Lester? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard.

Jacob placed into trust assets worth $1,000,000. Kelley is to receive from this trust an annual annuity of $100,000 for as long as she lives (Kelley's age is 75), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the remainder interest received by Lester? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard.

3. In both the gift tax and the estate tax, a credit is allowed to reflect transfer tax paid on taxable gifts made in prior years. However, if the tax rates in the current year differ from the tax rates in force in the prior year, the credit allowed will not be the same as the taxes computed on the original gift tax return for the prior year. In this case, the credit must be recomputed using current rates. Answer each of the following questions relating to the credit for transfer taxes on prior year's taxable gifts. As a reminder, in the gift tax formula, the credit is the tentative tax on prior years' taxable gifts. In the estate tax, the credit is gift tax paid (i.e., reflecting the application of the unified credit in the year of the prior gift, with both the unified credit and the tentative tax recomputed if needed).

A. None of the other answers is correct

B. $0

C. $175,000

D. $600,000

E. $200,000

F. $525,000

G. $345,800

The current year is 2015. In 2009 a taxable gift of $1,500,000 was made, with gift tax due of $210,000. In the estate tax formula for 2015, what is the credit allowed for the 2009 gift tax?

The current year is 2015. In 2010 a taxable gift of $1,500,000 was made, with gift tax due of $175,000. In the estate tax formula for 2015, what is the credit allowed for the 2009 gift tax?

The current year is 2015. In 2013 a taxable gift of $1,500,000 was made, but no gift tax was due. In the estate tax formula for 2015, what is the credit allowed for the 2013 gift tax?

The current year is 2015. In 2005 a taxable gift of $1,500,000 was made, with gift tax due of $210,000. In the gift tax formula for 2015, what is the credit allowed for the 2009 gift tax?

4. Answer each of the following independent questions

In 1996, the unified credit $192,800. In that year, what was the AEA?

The AEA for the estate tax was $3,500,000 in 2009. What was the estate tax unified credit?

For most of the first 10 years of the 21st century, the gift tax AEA was $1,000,000. For those years, what was the gift tax unified credit?

In 2015, the AEA was $5,430,000. What was the unified credit in that year?

A. $2,117,800

B. $1,455,800

C. $600,000

D. $345,800

E. $5,430,000

F. $3,500,000

G. None of the other answers is correct

H. $1,000,000

I. $192,800

The applicable exclusion amount (AEA) was indexed for inflation beginning with transfers in 2012. Prior to that time, the AEA was a static statutory amount. However, under EGTRRA, and even previous legislation, the amount of the AEA frequently changed -- usually increasing. Provide the AEA for each of the following independent situations

The taxable event was a death in 2005

The taxable event was a gift in 2005.

The taxable event was a death in 2009

The taxable event was a gift in 2009

The taxable event was a death in 2011

The taxable event was a gift in 2011

The taxable event was a death in 2015

The taxable event was a gift in 2015.

Choose answer from A to I bellow

A. $5,120,000

B. $1,000,000

C. $5,250,000

D. $3,500,000

E. $5,000,000

F. $1,500,000

G. None of the other answers is correct

H. $5,430,000

I. $2,000,000

For each of the following independent situations, determine the transfer tax due on the taxable transfer

The taxable event was $3,500,000 taxable gift (i.e., annual exclusion already subtracted) made in 2015.

The taxable event was a 2012 death leaving a taxable estate of $8,500,000.

The taxable event was a 2009 death leaving a taxable estate of $3,500,000.

The taxable event was $3,500,000 taxable gift (i.e., annual exclusion already subtracted) made in 2009

Choose answer from A to H below

A. $1,183,000

B. $0

C. $2,250,000

D. $0

E. $1,110,000

F. None of the other answers is correct

G. $1,352,000

H. $1,228,000

For each of the following independent situations, determine the tentative tax on the taxable transfer.

The amount of the taxable transfer was $3,500,000 made in 2015

The amount of the taxable transfer was $3,500,000 made in 2012

The amount of the taxable transfer was $8,500,000 made in 2015

The amount of the taxable transfer was $8,500,000 made in 2012.

The amount of the taxable transfer was $3,500,000 made in 2009.

The amount of the taxable transfer was $8,500,000 made in 2009.

Choose answer from A to K below

A. $1,455,800

B. $1,345,800

C. $1,205,800

D. $3,345,800

E. None of the other answers is correct

F. $1,183,000

G. $2,955,800

H. $3,705,800

I. $1,228,000

J. $0

K. $2,250,000

Reference no: EM131354606

Questions Cloud

Dynamic pricing strategies and their impact on profit : Consider dynamic pricing strategies and their impact on profit, explain why dynamic pricing provides significant profit benefit over (the best) price strategy as: a. Available cpacity decreases, b. demand uncertainty increases, c. seasonality in dema..

Present value-make single investment : Present value) Sarah Wiggum would like to make a single investment and have ?$2.12.1 million at the time of her retirement in 3030 years. She has found a mutual fund that will earn 55 percent annually. How much will Sarah have to invest? today? If Sa..

About to have the interest rate increased : Lucy is feeling crabby. Her adjustable rate mortgage is about to have the interest rate increased. She is exactly five years into her loan. She is offered two alternatives by her mortgage company; either pay the higher interest rate for the remaining..

Why women are more likely than men to develop depression : PSYC345- What factors help to explain why women are more likely than men to develop depression? What are some of the common myths about sexual harassment, rape, and abuse? What do these myths reveal about society's attitudes towards men ..

What is the value of the remainder interest received : Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for a period of 10 years, after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal r..

What is the current market value of nimoy equity : Nimoy Inc., purchased their only fixed asset, a widget machine, four years ago for $7.8 million. The same machinery can be sold today to Shatner Inc. for $4.65 million. What is the current market value of Nimoy's equity (common & preferred) if the m..

What is the expected rate of return on this particular stock : A stock is expected to earn 24% in a booming economy, 12% in a normal economy and lose 15% in a recessionary economy. There is a 15% chance of a boom, a 70% probability of a normal economy, and a 15% probability of a recession. What is the expected r..

Project requires initial cash investment : Corporation Z is considering a new project. This project requires an initial cash investment of $70,000. The project will generate cash inflows of $10,500 in the first year. Then, the project will do nothing for two years, after which time cash inflo..

Standard deviation of portfolio of randomly selected stock : Which statement below is correct concerning the standard deviation of a portfolio of randomly selected stocks. The greater the diversification of the portfolio, the greater the standard deviation of the portfolio.

User Account

All Pages