Joyce Passed Away on January 3 While on an Extended

question 26

Multiple Choice

Joyce passed away on January 3 while on an extended holiday cruise celebrating a very successful, and most profitable, previous year. Joyce was the chief executive officer of the Quillip Corporation. After the independent audit of Quillip's last year's financial statements was completed in February of this year, Joyce's estate received a $1,000,000 bonus check resulting from last year's corporate profits. Joyce's estate also sold Quillip stock for $500,000 in February of this year. Joyce originally purchased this stock eight years ago for $10,000. The stock was valued at $495,000 on her date of death. Solely based on the above facts, how much income in respect of a decedent should Joyce's estate report in the current year?

• A)$1,485,000
• B)$1,000,000
• C)$485,000
• D)$5,000

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Definitions:

Intimacy

Intimacy is defined as a close and often affectionate or loving personal connection with another individual or group.

Amygdala

A part of the brain's limbic system involved in processing emotions, especially fear and pleasure.

Late Adulthood

A stage in the human life span typically characterized by retirement, aging, and facing issues related to mortality and legacy.

Negative Events

Incidents or occurrences that have undesirable outcomes or bring about harmful emotional or physical consequences.