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 Problem 25-50 Parta (Algo) $ 1,520,000 26,200,000 82,500,000 17,200,000 $ 127,420,000 $5,400,000 6,300,000 $ 11,700,000 a. Tom made a taxable gift of $7.30 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
$ 1,520,000
26,200,000
82,500,000
17,200,000
$ 127,420,000
Estate Tax Due
$ 5,400,000
6,300,000
$ 11,700,000
Problem 25-50 Part a (Algo)
a. Tom made a taxable gift of $7.30 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.
Transcribed Image Text: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 $ 1,520,000 26,200,000 82,500,000 17,200,000 $ 127,420,000 Estate Tax Due $ 5,400,000 6,300,000 $ 11,700,000 Problem 25-50 Part a (Algo) a. Tom made a taxable gift of $7.30 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.
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