Stephen bought one acre of undeveloped land for $50,000. Five years later, when a developer wanted to
Question:
Stephen bought one acre of undeveloped land for $50,000. Five years later, when a developer wanted to open a strip mall, Stephen sold the still unimproved and undeveloped land to the developer for $100,000. Later that year, Stephen and his father, Tom, decided to buy five acres of undeveloped land together. They bought the land for $300,000, with Tom paying $200,000 from his retirement savings and Stephen paying $100,000 from the sale of his one acre; they took title to the property as joint tenants with right of survivorship. This year, when the property is worth $600,000, Stephen died in a tragic accident. What, if anything, is included in Stephen's gross estate as a result of the forgoing transactions?
A. No inclusion
B. $100,000
C. $200,000
D. $300,000
E. $400,000
F. $500,000
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina