Question: Marvin founded Electrix Corporation which includes both common and preferred shares. The preferred stock is noncumulative, has no redemption date, and possesses liquidation preferences. Marvin
Marvin founded Electrix Corporation which includes both common and preferred shares. The preferred stock is noncumulative, has no redemption date, and possesses liquidation preferences. Marvin made a gift to his children of all the shares of the common stock. At the time of the gift, the preferred stock had a value of $800,000 and the common stock had a value of $6,000,000. In the current year, ten years after making the gift, Marvin dies only owning the preferred stock. At the time of his death, the value of the preferred stock is $1,000,000 and the value of the common stock is $10,000,000. Group of answer choices Marvin's gross estate includes $0 as to the stock. Marvin's gross estate includes $10,000,000 as to the stock. Marvin made a gift of $800,000 ten years ago. Marvin made a gift of $6,800,000 ten years ago. None of the above is correct
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