Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

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

Write a 600-800 word memo to your accounting committee on

Write a 600-800 word memo to your accounting committee on fraud detection discussing the 6 steps of the Proactive Method of Fraud Detection found in figure 6.1 of Chapter 6. Include methods to gather information about a ...

Accounting discussion questionaccounts receivable bad debt

Accounting Discussion Question "Accounts Receivable Bad Debt Expense (Direct Write Off Method Vs Allowance Method)": • Discuss the primary advantages and disadvantages of applying the direct write-off over the allowance ...

Your city has decided to build a new library the projected

Your city has decided to build a new library. The projected cost is $2 million. A bond issue for $1.2 million has been authorized, and the remainder is supposed to come from a contribution of $800,000 from the general fu ...

Kiona co set up a petty cash fund for payments of small

Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year). May 1 Prepared a company check for ...

How do finance and accounting play a role in ethics and

How do finance and accounting play a role in ethics and sustainable positive social change? How might you use accounting or finance to support this role that you described above?

Ginos restaurant is a popular restaurant in boston

Gino's Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based cos ...

Question 1the company you work for has a large amount of

Question 1 The company you work for has a large amount of disposable cash and very little debt on its books. The board of directors has expressed an interest in taking this money and investing in equity and debt securiti ...

What went wrongfriends bank is seeking to hire a new teller

What Went Wrong? Friend's Bank is seeking to hire a new teller. Darrell has applied for the position. His application states that five years ago, he was convicted for embezzlement as a teller. In the interview, Darrell r ...

1 many firms are relying on cloud computing also known as

1. Many firms are relying on cloud computing, also known as "the cloud," to perform key business functions. By moving transactional processing to the cloud, firms are exposing themselves to additional attacks as well as ...

Accountingthe accepted microsoft office versions for this

Accounting The accepted Microsoft Office versions for this assignment are Microsoft Office 2013 (for PC) and Microsoft Office for Mac 2011 (for Macintosh). Students may use a more recent version if available. Select a pe ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen