Problem 25-50 (LO 25-3) (Static) [The following information applies to the questions displayed below] Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his spouse, Kaffie, and the real estate to a church, The First Church of Methodology. The remainder of Tom's assets were to be placed in trust for three children. Tom's estate consisted of the following: Assets: Personal assets Cash and stock Intangible assets (film rights) Real estate Liabilities: Mortgage Other liabilities $ 800,000 24,000,000 71,500,000 15,000,000 $ 111,300,000 $ 3,200,000 4,100,000 $ 7,300,000 Problem 25-50 Part a (Static) a. Tom made a taxable gift of $8 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit 25-2) Note: Enter your answers in dollars, not millions of dollars. Estate Tax Due

Which of the following is not a legacy? a. a tract of land bequeathed to the local humane society b. a diamond and pearl necklace to a family member c. $20,000 left to a nephew d. a Ford Explorer left to a niece

Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his spouse, Kaffie, and the real estate to a church, The First Church of Methodology. The remainder of Tom's assets were to be placed in trust for three children. Tom's estate consisted of the following: Assets:   Personal assets $ 1,040,000 Cash and stock 24,200,000 Intangible assets (film rights) 72,500,000 Real estate 15,200,000   $ 112,940,000 Liabilities:   Mortgage $ 3,400,000 Other liabilities 4,300,000   $ 7,700,000   a. Tom made a taxable gift of $5.30 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit 25-2.) Note: Enter your answers in dollars, not millions of dollars.

At the time of her death on September 4, Alicia held the following assets:   Fair Market Value Bonds of Emerald Tool Corporation $900,000   Stock in Drab Corporation 1,100,000 Insurance policy (face amount of $400,000) on the life of her brother, Mitch 80,000* Roth IRAs $300,000   *Cash surrender value. Alicia also held a lifetime income interest in a trust (fair market value of trust assets $2,000,000) created by her late spouse Bert. (The executor of Bert's estate did not make a QTIP election.) In October, Alicia's estate received an interest payment of $11,500 ($6,000 accrued before September 4) paid by Emerald and a cash dividend of $9,000 from Drab. The Drab dividend was declared on August 19 and was payable to date of record shareholders on September 5. Although Mitch initially survives Alicia, she is the designated beneficiary of the insurance policy. The IRAs are distributed to Alicia's children. Mitch is killed by a rock slide while mountain climbing in…