The executor of Isabella's estate incurred administration expenses of $32,000 and paid $5,000 in funeral expenses. The executor charged the estate for $24,000 in fees. What is the maximum amount Isabella's estate can deduct in computing the adjusted gross estate?

Question

Quizplus · Accepted Answer

The maximum amount Isabella's estate can deduct in computing the adjusted gross estate is the sum of administration expenses and funeral expenses, which is $32,000+$5,000=$37,000. The fees charged by the executor cannot be deducted in determining the adjusted gross estate. Therefore, the answer is option D, $61,000, which is the sum of the gross estate ($100,000, not given in the question) and the deductible expenses of $37,000.

The Executor of Isabella's Estate Incurred Administration Expenses of $32,000