The gross estate of Raul,decedent who died in 2009,includes 700 shares of stock of Orange Corporation (basis to Raul of $400,000,fair market value on date of death of $3 million).The estate will incur $2 million of death taxes and funeral and administration expenses,and the adjusted gross estate is $8 million.Denise,Raul's daughter and sole heir of his estate,owns the remaining 300 shares of Orange Corporation's (1,000)shares outstanding.In the current year,Orange (E & P of $4 million)redeems all of the estate's 700 shares for $3 million.What are the tax consequences of the redemption to Raul's estate?

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The Answer of The gross estate of Raul,decedent who died in 2009,includes 700 shares of stock of Orange Corporation (basis to Raul of $400,000,fair market value on date of death of $3 million).The estate will incur $2 million of death taxes and funeral and administration expenses,and the adjusted gross estate is $8 million.Denise,Raul's daughter and sole heir of his estate,owns the remaining 300 shares of Orange Corporation's (1,000)shares outstanding.In the current year,Orange (E & P of $4 million)redeems all of the estate's 700 shares for $3 million.What are the tax consequences of the redemption to Raul's estate?

The Gross Estate of Raul,decedent Who Died in 2009,includes 700