Assume That Holly Scott Dies on July 12, 2021

question 40

Multiple Choice

Assume that Holly Scott dies on July 12, 2021. Ms. Scott's assets include the following: Alpha Stock costing $40,000 but valued at $50,000; a house costing $320,000 but valued at $680,000; life insurance in the amount of $650,000; and cash from various sources totaling $62,600. Three credit cards in Ms. Scott's name had balances totaling $10,620 on the date of death. The estate paid funeral and final medical expenses in the amount of $60,386. There were no charitable gifts designated by the will, and Ms. Scott was single at the time of her death. What is the amount of the taxable estate?

• A) $351,594.
• B) $1,001,594
• C) $1,371,594.
• D) $1,382,214.
• E) $1,442,600.

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Definitions:

Rational Choice

A theory in economics and sociology that stipulates individuals always make prudent and logical decisions that provide them with the greatest benefit or satisfaction.

Life Expectancy

The average age at death of the members of a population.

Infectious Diseases

Diseases caused by pathogenic microorganisms, such as bacteria, viruses, parasites, or fungi, that can be spread directly or indirectly from one person to another.

Emotional Investment

The extent of emotional effort and attachment one places in a relationship, activity, or goal, affecting their motivation and attitudes.