Chloe's gross estate consists of the following property valued at the date of death:
Chloe's real estate is encumbered by a mortgage of $450,000, and Chloe's executor paid her funeral costs of $6,000 and charged fees for $24,000. Which of the following is a true statement?
$$\begin{array}{l}
\begin{array} {| l | }
\hline \text { Description} \
\hline \text {Real estate}\
\hline \text {Cash, stock, and bonds}\
\hline \text {Personal property}\\hline
\end{array}
\end{array}$$

Question

Chloe's gross estate consists of the following property valued at the date of death:
Chloe's real estate is encumbered by a mortgage of $450,000, and Chloe's executor paid her funeral costs of $6,000 and charged fees for $24,000. Which of the following is a true statement?
$$\begin{array}{l}
\begin{array} {| l | } 
\hline \text { Description} \
\hline \text {Real estate}\
\hline \text {Cash, stock, and bonds}\
\hline \text {Personal property}\\hline 
\end{array}
\end{array}$$

Quizplus · Accepted Answer

Chloe's gross estate is $7,500,000 ($7,000,000 + $500,000). Her funeral costs and executor fees total $30,000 ($6,000 + $24,000). Her adjusted gross estate is $7,470,000 ($7,500,000 - $30,000). Her taxable estate is at least $7,020,000 ($7,470,000 - $450,000).

Chloe's Gross Estate Consists of the Following Property Valued at the Date