Ask Question, Ask an Expert


Ask Accounting Basics Expert

In 2013, Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactions described below. Determine Ginger's gift tax liability for 2013 if she and Greg elect gift splitting and Greg gave their son Stevie stock valued at $80,000 during 2013. Ginger's grandmother Mamie died November 12, 2010, and Mamie's will bequeathed $250,000 to Ginger. On March 4, 2013, Ginger irrevocably disclaimed the $250,000 in writing, and, as a result, the property passed instead to Ginger's sister Gertie. In 2013, Ginger gave $100,000 cash to her alma mater, State University. In 1996, Ginger had given ownership of a life insurance policy on her own life to her daughter, Denise, and in 2013 Ginger paid the $22,000 annual premium on the policy. In 2010, Ginger deposited $45,000 into a bank account in the name of herself and son Stevie, joint tenants with rights of survivor-ship. Stevie deposited nothing. Neither party made a withdrawal until 2013, when Stevie withdrew $30,000. In 2013, Ginger created a trust with County Bank as trustee and transferred $300,000 of stock to the irrevocable trust. She named her husband Greg (age 47) to receive all the trust income semi-annually for life and daughter Drucilla to receive the remainder. In 2013, she gave a remainder interest in her beach cottage to the American Red Cross and kept the right to use the cottage rent free for the rest of her life. The fair market value of the cottage was $70,000.

Other information: Ginger's earlier taxable gifts are $175,000, all made in 1996.

Ginger will make whatever elections are necessary to minimize her current gift tax liability. Assume the Sec. 7520 interest rate is 4%.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M943136

Have any Question? 

Related Questions in Accounting Basics

Fasb codification and careers in accountingplease respond

FASB Codification and Careers in Accounting"Please respond to the following: • Throughout this course you have utilized the FASB codification to research the authoritative guidelines for accounting transactions. Briefly ...

Research problem you are interviewing a client before

Research Problem : You are interviewing a client before preparing his tax return. He indicates that he did not list as income $96,000 received as a recovery for false imprisonment. What should you do with respect to this ...

Big alrsquos pizza emporium a subsidiary of big alrsquos

Big Al’s Pizza Emporium, a subsidiary of Big Al’s Pizza, Inc., has decided to sell frozen pizzas in its restaurants. Restaurant customers will take these pizzas home and cook them. The restaurants will sell frozen meat p ...

Problem-ccc has decided to carry and sell t-shirts with its

Problem- CCC has decided to carry and sell t-shirts with its logo printed on them. Journalize and post the following entries. You may need to create additional T accounts. Note that we will work a whole year's worth of p ...

Task- this assessment task consists of five

Task- This assessment task consists of five questions. Question 1 - Financial statement disclosures You are the financial accountant for Rainyday Ltd, and are in the process of preparing its financial statements for the ...

Case study-nbsp pc problems plcpc problems plc is a

Case Study-  PC Problems plc PC Problems plc is a (fictitious) company engaged in the servicing of personal computers on a carry-in basis. The company started out several years ago as a small shop working on household ap ...

Question 1you own an automobile parts company and have been

Question #1 You own an automobile parts company and have been approached by a leading car manufacturer to supply parts to the company. How would you determine that the car manufacturer has a good record of servicing sale ...

James lives in maryland but works in virginia john lives in

James lives in Maryland but works in Virginia. John lives in Virginia but works in Maryland. John believes he has been taken advantage of by Jim in a business dealing. John has paid Jim a down payment to paint his house ...

Problem-fenwicke company organized and began operating a

Problem- Fenwicke Company organized and began operating a subsidiary in a foreign country on January 1, 2015, by investing LCU 68,000. This subsidiary immediately borrowed LCU 170,000 on a five-year note with 6 percent i ...

B bakery is a family owned firm with around 70 employees

B Bakery is a family owned firm with around 70 employees and sales revenue increased to more than $ 13.5 million during the past year. It has been in business for over 50 years and supplies bread and confectionary produc ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate