Question

1. At the time of her death on June 6, 2017, Mary owned the following assets

● Taupe Corporation stock(cost $400,000, FMV $800,000). On May 4, Taupe declared a

cash dividend, payable on June 15, to shareholders as of the record date(the ex-dividend date) of June 4. Mary's executor received the $40,000 dividend on the scheduled payment date(June 15)

● City of Boise bonds(cost $800,000, FMV $780,000). Interest accrued to June 6 was $42,000. The executor eventually collected $50,000 (included post-death accrual of $8,000) on July 20.

● A note which Mary the right to receive $100,000 per year for the next 2 years (2017 and 2018) and the possible right to receive $100,000 for the following 2 years, 2019 and 2020, but only if Mary were living(which she was not). At the time of Mary's death the value of the guaranteed right to receive $100,000 in 2017 and 2018 is $185,000 and the value of Mary's contingent right to receive $100,000 in 2019 and 2020(if she survived) was $76,000. Mary obtained the note when she sold her house to a third party in an arms length transaction.

1. As to these transactions, how much is included in Mary's ​gross estate?​ ________

1. As to these transactions, how much is included on the Estate of Mary's ​income tax return for the year of death?

Answer 1

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