In 2006, Roger Gives Stock Valued at $100,000 to Martha

question 4

Multiple Choice

In 2006, Roger gives stock valued at $100,000 to Martha. Roger and Martha are not related. In 2008, Martha uses the stock then valued at $110,000 as partial consideration to acquire realty costing $220,000. Pat (her brother) furnishes the remaining $110,000 of consideration. The realty is titled in the names of Martha and Pat as joint tenants with right of survivorship. This year, Martha dies and Pat survives. The realty is valued at $300,000 at Martha's death. How much, if any, of the realty's value will be included in Martha's estate?

• A) $300,000
• B) $110,000
• C) $0
• D) $150,000

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Definitions:

Sales Journal

A specialized accounting journal used to record all sales transactions of a company on credit.

Accounts Receivable Subsidiary Ledger

A ledger detailing individually the amounts owed by each customer, supplementing the general ledger's summary account.

Posting Frequency

The regularity with which financial transactions are recorded and posted in the accounting system.

Accounts Payable

Liabilities of a business that are due to vendors or suppliers for goods or services received that have not yet been paid for.