Questions and Answers of Pearsons Federal Taxation Corporations 2024

In 2014, Francois Landry, resident of Louisiana, funded the Landry Trust. The trust instrument stated that the beneficiaries of the trust shall be all the children of Claudette Landry Mercier, who is
The IRS audited the tax returns of Darryl Blueberry, a former major league outfielder. It contended that, between 2014 and 2017, Blueberry earned $$800,000$ for autograph signings, appearances, and
Bess, a widow, died in October 2023. Her gross estate, which totaled $$12.5$ million, included a $$100,000$ life insurance policy on her life that she gave away in 2020. The taxable gift that
Maria Martinez died in 2023, survived by her spouse, Sergio, and two adult children. Her gross estate, all of which passed under her will, was valued at $$17.2$ million. She had Sec. 2053
Joseph Jernigan died in 2023 with a taxable estate of $$14.1$ million. He was survived by his spouse Josephine and several children. He made taxable gifts of $$100,000$ in 1974 and $$650,000$
Elaine died on May 1, 2023. Her gross estate consisted of the following items:Elaine’s Sec. 2053 deductions totaled $$200,000.$ She had no other deductions.a. What percentage of Elaine’s
Giovanni died in 2023 with a gross estate of $$13.9$ million and debts of $$30,000.$ He made post-1976 taxable gifts of $$100,000,$ valued at $$80,000$ when Giovanni died. His estate paid
Bonnie died on June 1, 2023, survived by her husband, Abner, and two sons, Carl and Doug. Bonnie’s only lifetime taxable gift was made in October 2020 in the taxable amount of $$13.25$ million.
Assume the same facts as in Problem 13-57 except the joint tenancy land was held in the names of Bonnie and her son Doug, joint tenants with right of survivorship. Also assume that Bonnie provided
Gaylord Gunnison (GG) died January 13, 2023, and his gross estate consisted of three properties—cash, land, and stock in a public company. The amount of cash on the date of his death was $$10.9$
Steve Silver, a new client, owns stock in HyTeche, Inc., which recently had an initial public offering. In early 2022, his stock is valued at $$8$ million. His only other asset is $$9$ million of
Matt Patterson died in early 2023 with a $$16.5$ million gross estate and no deductions other than a potential marital deduction. He bequeathed all his property to his spouse, Nancy, with the
Prepare an estate tax return (Form 706) for Adam Zugg of 45 Cornfield Place, Midwest City, IL 60000. Adam died October 31, 2023. He was survived by his wife, Callie, and their son, Zebulon. At the
Arthur Zolnick died at age 84 on December 7, 2023. In March 2018, he transferred $$4$ million of stock to a charitable remainder annuity trust (CRAT) from which he named himself to receive
In May 2008, Jasper Mason died, survived by his spouse Amber Mason and four adult children. His gross estate was valued at $$3$ million, and he had Sec. 2053 deductions of $$120,000.$ His will
August Couch died July 15, 2015. His estate tax return, filed on January 4, 2016, showed a taxable estate of $$3.1$ million with no estate tax payable. Form 706, Part 6, addressing Portability of
Philip Seymour Hoffman died in February 2014, survived by three children (Cooper, Tallulah, and Willa) and their mother Marianne O’Donnell. His estate was estimated to have a net value of $$35$
For the first five months of its existence (August through December 2022), the Estate of Amy Ennis had gross income (net of expenses) of $$7,000$ per month. For January through July 2023, the
Calculation of the Tax Liability. A complex trust has taxable income of $$29,900$ in 2023. The $$29,900$ includes $$5,000$ of rental income and $$25,000$ of taxable interest income, reduced
Suellen Symmes died on January 15, 2023. Her estate elected a November 30 year end. The executor projects that the estate will receive interest income of $$50,000$ by November 30, 2023, and will
The Trotter Trust, a simple trust, has the receipts and expenditures listed below for the current year. Assume the Uniform Act governs an item’s classification as principal or income. The
Refer to Problem C:14-38. Assume the trustee must pay out all of its income currently to its beneficiary, Julio.a. What is the deductible portion of the trustee’s fee?b. What is the trust’s
Refer to Problem C:14-42. How would your answer change if instead the trust were a complex trust that makes no distributions in 2022 and 2023? Assume the trust earns $$8,000$ of corporate bond
Holly funded the Holly Marx Trust in January 2023. The entire trust income is payable to her adult son Jack for 20 years. At the end of the twentieth year, the trust assets are to pass to Holly’s
Refer to Problem C:14-45. Explain how your answers would change for each independent situation indicated below:a. At the end of the trust term, the property passes instead to Holly’s nephew
Dana Dodson died October 31, 2021, with a gross estate of $$16.7$ million, debts of $$200,000,$ and a taxable estate of $$16.5$ million. Dana made no taxable gifts. All of her property passed
Glorietta Trust is an irrevocable discretionary trust funded by Grant Glorietta. The discretionary income beneficiary for life is Grant’s son, Gordon Glorietta (single). Gordon is a partner in a
Cate Cole died in 2020, and her will left her entire estate in equal shares to her two adult children, Calvin and Corrine. Both children anticipate being in the top income tax bracket for at least
Stan Meadows funded a trust in 2014 and named Merchants Bank as trustee. He paid no gift tax on the transfer. The trustee in its discretion is to pay out income, but not principal, to Stan’s
Will, a bachelor, died in 2023. At that time, his sole asset was cash of $15 million. Assume no debts or funeral and administration expenses and no charitable bequests. His gift history was as
George Tanner died October 2, 2023, survived by his son Thomas and his daughter Gigi Tanner Stewart and her children, Sam and Cindy. George was the sole stockholder of Tanner, Inc., a C corporation.
Art Rutter sold an apartment building in May 2023 for a small amount of cash and a note payable with payments beginning in 2023. Principal and interest payments are due annually on the note in April
Determination of Accounting Income and Distribution. The Trotter Trust, a simple trust, has the receipts and expenditures listed below for the current year. Assume the Uniform Act governs an item’s
During the current year, a simple trust has the following receipts and expenditures. The Uniform Act governs the accounting classification.
Joan died April 17, 2022. Joan’s executor chose March 31 as the tax year end for the estate. The estate’s only beneficiary, Kathy, reports on a calendar year. The executor of Joan’s estate
Marion Mosley created the Jenny Justice Trust in 2005 with First Bank named as trustee. For 20 years, the trust is to pay out all its income semiannually to the beneficiary, Jenny Justice. At the end
List an advisor's duties that are excluded under the AICPA's Statements on Standards for Tax Services.