Mr. Riekoff died and left the following stocks to his two sons:
Required:
a.If both sons sold their stocks ten months after their father's death for $50,000 and the alternate valuation was not used, what would their respective capital gains/losses be?
b.Assuming that the price of the stock remained constant in the year prior to Mr. Riekoff's death, what might have been a better method of handling the stocks from a tax planning perspective? Explain why.

Question

Mr. Riekoff died and left the following stocks to his two sons:  
Required: 
a.If both sons sold their stocks ten months after their father's death for $50,000 and the alternate valuation was not used, what would their respective capital gains/losses be?
b.Assuming that the price of the stock remained constant in the year prior to Mr. Riekoff's death, what might have been a better method of handling the stocks from a tax planning perspective? Explain why.

Quizplus · Accepted Answer

The Answer of Mr. Riekoff died and left the following stocks to his two sons:  
Required: 
a.If both sons sold their stocks ten months after their father's death for $50,000 and the alternate valuation was not used, what would their respective capital gains/losses be?
b.Assuming that the price of the stock remained constant in the year prior to Mr. Riekoff's death, what might have been a better method of handling the stocks from a tax planning perspective? Explain why.

Mr Riekoff Died and Left the Following Stocks to His