The adjusted gross estate of Debra, decedent, is $16 million. Debra's estate will incur death taxes and funeral and administration expenses of $2 million. Debra's gross estate includes stock in Silver Corporation that she had purchased 12 years ago for $1.2 million (date of death fair market value of $6 million). At the time of her death, Debra owned 80% of the stock in Silver Corporation. Silver Corporation (E & P of $8 million) redeems all of the estate's stock in the corporation for $6 million. Debra's will names her daughter, Dena, who owns the remaining 20% interest in Silver Corporation, as her sole heir. With respect to this redemption, Debra's estate has the following income:

Question

Quizplus · Accepted Answer

The Answer of The adjusted gross estate of Debra, decedent, is $16 million. Debra's estate will incur death taxes and funeral and administration expenses of $2 million. Debra's gross estate includes stock in Silver Corporation that she had purchased 12 years ago for $1.2 million (date of death fair market value of $6 million). At the time of her death, Debra owned 80% of the stock in Silver Corporation. Silver Corporation (E & P of $8 million) redeems all of the estate's stock in the corporation for $6 million. Debra's will names her daughter, Dena, who owns the remaining 20% interest in Silver Corporation, as her sole heir. With respect to this redemption, Debra's estate has the following income:

The Adjusted Gross Estate of Debra, Decedent, Is $16 Million