In February of the Current Year,Tom Dies

question 18

Multiple Choice

In February of the current year,Tom dies.Two years and nine months before the date of death,Tom made a gift of stock valued at $2 million.Gift taxes paid on the transfer by Tom were $435,000 after reduction for a $345,800 unified credit ($780,800 - $345,800) .At the time of his death,the gifted stock was valued at $2.3 million.The amount included in Tom's gross estate from this transfer is

• A)$2,000,000.
• B)$2,300,000.
• C)$435,000.
• D)none of the above

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Definitions:

Indirect Materials

Materials used in the production process but not directly traceable to a finished product, such as lubricants and cleaning supplies.

Advertising

The activity of promoting products or services to potential customers through various media channels.

Current Asset Items

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer; includes cash, accounts receivable, and inventory.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.