Ted Died on May 3

question 101

Multiple Choice

Ted died on May 3. At the time of his death, he owned a beach house valued at $250,000. On June 10, the beach house was completely destroyed by a hurricane and there was no insurance coverage. If the executor elects to use the alternate valuation date, the executor will

• A)include the beach house in the gross estate at $250,000.
• B)take a casualty loss of $250,000 on the estate tax return.
• C)take a casualty loss of $250,000 on the estate's income tax return.
• D)include the beach house in the gross estate at $0.

---

Definitions:

Displacement Theory

A theory suggesting that individuals divert negative emotions or impulses towards something less threatening rather than the actual source of those emotions.

Terror Management Theory

A psychological framework suggesting that humans' awareness of their own mortality drives behaviors aimed at bolstering self-esteem and cultural worldviews.

Instrumental Aggression

Aggressive behavior aimed at achieving a specific goal or outcome, rather than stemming from feelings of anger or hostility.

Hostile Attribution Bias

The tendency to interpret others' behaviors as having hostile intent, even when the behaviors are ambiguous or benign.