FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Right before his death from a terminal illness, Shing makes a gift of $615,000 cash to his church—a gift that he had planned to bequeath to the church anyway. Presuming Shing had a marginal Federal income tax rate of 35% and his Federal estate tax bracket is 40%, what is the tax effect of his lifetime transfer. Ignore the 20%/30%/50%/60% contribution limitations.

1) If gifted during his lifetime, Shing will save _______ in income taxes.

2) If made as a bequest from his estate, the estate will save ______ in estate taxes.

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