Rachel Owned Four Assets When She Died in 2018

question 67

Essay

Rachel owned four assets when she died in 2018.
Asset Date of Death Value Alternate Date Valuation
A $11,160,000 $11,180,000
B 2,200,000 2,390,000
C 3,250,000 3,310,000
D 825,000 700,000
Which value should the executor or personal representative use for valuing the gross estate? Explain.

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Definitions:

Flexible Budget Report

This is a financial report that adjusts to different levels of activity and provides a more accurate comparison of budgeted and actual performance.

Actual Activity

Actual activity refers to the real, measured amount of work completed or resources consumed within a given time frame, often compared against planned or budgeted levels in various contexts, such as accounting or project management.

Static Budget

A projection of budget data at one level of activity.

Actual Activity

This refers to the measure of the real amount of production activity or work completed in a specified period.