Dustin owns all of the stock of Gold Corporation which includes both common and preferred shares.The preferred stock is noncumulative,has no redemption date,and possesses no liquidation preference.In 1995,Dustin makes a gift to his adult children of all of the common stock.He dies in 2012 still owning the preferred stock.The value of the Gold stock on the relevant dates is:
One of the tax consequences of this estate freeze is:
A) Dustin's gross estate includes $0 as to the stock.
B) Dustin's gross estate includes $5,000,000 as to the stock.
C) Dustin made a gift of $400,000 in 1995.
D) Dustin made a gift of $3,400,000 in 1995.
E) None of the above is correct.
Correct Answer:
Verified
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