Mason is the founder of Garnet 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 1996 and when the common stock has a value of $3,200,000, Mason gives it to his adult children. He retains the preferred stock which, at this time, has a value of $500,000. In 2013, Mason dies. Values on the date of death are: $4,500,000 for the common stock and $650,000 for the preferred.
a. What is the amount of the gift Mason makes in 1996?
b. How much as to Garnet Corporation is included in Mason's gross estate in 2013?

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The Answer of Mason is the founder of Garnet 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 1996 and when the common stock has a value of $3,200,000, Mason gives it to his adult children. He retains the preferred stock which, at this time, has a value of $500,000. In 2013, Mason dies. Values on the date of death are: $4,500,000 for the common stock and $650,000 for the preferred.
a. What is the amount of the gift Mason makes in 1996?
b. How much as to Garnet Corporation is included in Mason's gross estate in 2013?

Mason Is the Founder of Garnet Corporation and Owns All