Brandi is the founder of Carmine Corporation and owns all of its stock,both common and preferred.The preferred stock is noncumulative and possesses no preferential rights as to liquidation.In 1992 and when the common stock has a value of $1,000,000,Brandi gives it to her adult children.She retains the preferred stock which,at this time,has a value of $200,000.In 2008,Brandi dies.Values on the date of death are: $2,000,000 for the common stock and $300,000 for the preferred.
a.What is the amount of the gift Brandi makes in 1992?
b.How much as to Carmine Corporation is included in Brandi's gross estate in 2008?

Question

Quizplus · Accepted Answer

The Answer of Brandi is the founder of Carmine Corporation and owns all of its stock,both common and preferred.The preferred stock is noncumulative and possesses no preferential rights as to liquidation.In 1992 and when the common stock has a value of $1,000,000,Brandi gives it to her adult children.She retains the preferred stock which,at this time,has a value of $200,000.In 2008,Brandi dies.Values on the date of death are: $2,000,000 for the common stock and $300,000 for the preferred.
a.What is the amount of the gift Brandi makes in 1992?
b.How much as to Carmine Corporation is included in Brandi's gross estate in 2008?

Brandi Is the Founder of Carmine Corporation and Owns All