The following items are relevant for the first income tax return for the Ken Kimble Estate. Mr.
Question:
The following items are relevant for the first income tax return for the Ken Kimble Estate. Mr. Kimble, a cash method of accounting taxpayer, died on July 1, 2018.
Dividends ......................................................................... . . . . . . . $10,000
Interest on corporate bonds ...................................................... . . . . 18,000
Collection on installment note from sale of investment land .............. 24,000
The record dates were June 14 for $6,000 of the dividends and October 31 for the remaining $4,000 of dividends. The bond interest is payable annually on October 1. Mr. Kimble's basis in the land was $8,000. He sold it in May of 2017 for a total sales and contract price of $48,000 and reported his gain under the installment method. Ignore interest on the installment note. What amount of IRD should be reported on the estate's first calendar year income tax return?
Step by Step Answer:
Global Taxation How Modern Taxes Conquered The World
ISBN: 9780192897572
1st Edition
Authors: Philipp Genschel, Laura Seelkopf