Following Are the Fair Market Values of Wilma's Assets at Her

question 53

Multiple Choice

Following are the fair market values of Wilma's assets at her date of death: The executor of Wilma's estate did not elect the alternate valuation date. The amount includible in Wilma's gross estate is

• A) $150,000.
• B) $550,000.
• C) $800,000.
• D) $950,000.

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Definitions:

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax, varying by country and sometimes by the size or type of business.

Enterprise Multiple

A ratio used to determine the value of a company that takes into account its debt and equity, calculated by dividing the enterprise value by EBITDA.

EBIT

Known as Earnings Before Interest and Taxes, this financial gauge calculates a firm's profitability without considering interest and income tax charges.

Average Collection Period

The average number of days it takes for a company to collect payments from its customers, a measure of the efficiency of its credit policies.