Mr.Riekoff died and left the following stocks to his two sons:
?
?
$\begin{array}{lll}
&\text { Tom } & \text { Ted } \
&\text { Alpha Co. } & \text { Beta Co.} \
\text { Cost } & \$ 50,000 & \$ 60,000 \
\text { Value at date of death } & \$ 20,000 & \$ 98,000
\end{array}$ Required:
?
a.If both sons sold their stocks ten months after their father's death for $50,000 and the alternate valuation was not used, what would their respective capital gains/losses be?
b.Assuming that the price of the stock remained constant in the year prior to Mr.Riekoff's death, what might have been a better method of handling the stocks from a tax planning perspective? Explain why.

Question

Mr.Riekoff died and left the following stocks to his two sons:
?
?
 $\begin{array}{lll}
&\text { Tom } & \text { Ted } \
&\text { Alpha Co. } & \text { Beta Co.}  \
\text { Cost } & \$ 50,000 & \$ 60,000 \
\text { Value at date of death } & \$ 20,000 & \$ 98,000
\end{array}$ Required:
? 
a.If both sons sold their stocks ten months after their father's death for $50,000 and the alternate valuation was not used, what would their respective capital gains/losses be?
b.Assuming that the price of the stock remained constant in the year prior to Mr.Riekoff's death, what might have been a better method of handling the stocks from a tax planning perspective? Explain why.

Quizplus · Accepted Answer

The Answer of Mr.Riekoff died and left the following stocks to his two sons:
?
?
 $\begin{array}{lll}
&\text { Tom } & \text { Ted } \
&\text { Alpha Co. } & \text { Beta Co.}  \
\text { Cost } & \$ 50,000 & \$ 60,000 \
\text { Value at date of death } & \$ 20,000 & \$ 98,000
\end{array}$ Required:
? 
a.If both sons sold their stocks ten months after their father's death for $50,000 and the alternate valuation was not used, what would their respective capital gains/losses be?
b.Assuming that the price of the stock remained constant in the year prior to Mr.Riekoff's death, what might have been a better method of handling the stocks from a tax planning perspective? Explain why.

MrRiekoff Died and Left the Following Stocks to His Two