At Mark's Death, Mark Owed a Debt of $40,000 Plus

question 19

Essay

At Mark's death, Mark owed a debt of $40,000 plus $2,000 of accrued interest. Mark's funeral expenses were $5,000, and Mark's charge card had a balance due of $400. The expected administration costs for the estate are $2,000. Assume the estate will owe no income taxes in the next few years and that the taxable estate is expected to be in excess of $1 million. What amount should the estate deduct?

---

Definitions:

Court of Appeals for the Federal Circuit

A specific United States appellate court with jurisdiction over several areas, including international trade, government contracts, patents, and trademarks.

United States Court of Federal Claims

A federal court that hears monetary claims against the U.S. government.

United States Court of Appeals for Veterans Claims

A federal court that hears appeals from the Board of Veterans' Appeals regarding veterans' benefits.

Supreme Court of China

The highest court in the People's Republic of China, overseeing the administration of justice for civil and criminal cases.