Praneh Patel,a Widower,died in March of the Current Year

question 26

Essay

Praneh Patel,a widower,died in March of the current year.His gross estate is $5,325,000,and at the time of his death,he owed debts of $40,000.His will made a charitable bequest of $280,000 and left the rest of his property to his children.His administrative expenses are estimated to be about $55,000.What tax issues should the estate's CPA consider when preparing Praneh's estate tax return and his estate's income tax return?

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Definitions:

Inferior Goods

Inferior goods are types of goods whose demand decreases as the income of the consumer increases, opposite to what is observed with normal goods.

Superior Good

A type of good whose demand increases as the income of individuals increases, contrary to inferior goods.

Demand Curve

A visual chart that illustrates the connection between a product's price and the amount consumers want to purchase.

Price

The monetary value needed to obtain a product, service, or investment.