Betty's adjusted gross estate is $7 million. The death taxes and funeral and administration expenses of her estate total $800,000. Included in Betty's gross estate is stock in Heron Corporation, valued at $2.1 million as of the date of her death in 2011. Betty had acquired the stock six years ago at a cost of $410,000. If Heron Corporation redeems $800,000 of Heron stock from the estate, the transaction will qualify under § 303 as a redemption to pay death taxes and receive sale or exchange treatment.

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The Answer of Betty's adjusted gross estate is $7 million. The death taxes and funeral and administration expenses of her estate total $800,000. Included in Betty's gross estate is stock in Heron Corporation, valued at $2.1 million as of the date of her death in 2011. Betty had acquired the stock six years ago at a cost of $410,000. If Heron Corporation redeems $800,000 of Heron stock from the estate, the transaction will qualify under § 303 as a redemption to pay death taxes and receive sale or exchange treatment.

Betty's Adjusted Gross Estate Is $7 Million