Dustin Owns All of the Stock of Gold Corporation Which $$\begin{array} { l r r } & 1995 & 2016 \\\text { Preferred } & \$ 400,000 & \$ 500,000 \\\text { Common } & 3,000,000 & 5,000,000\end{array}$$

question 34

Multiple Choice

Dustin owns all of the stock of Gold Corporation which includes both common and preferred shares. The preferred stock is noncumulative, has no redemption date, and possesses no liquidation preference. In 1995, Dustin makes a gift to his adult children of all of the common stock. He dies in 2016 still owning the preferred stock. The value of the Gold stock on the relevant dates is: $$\begin{array} { l r r } & 1995 & 2016 \\\text { Preferred } & \$ 400,000 & \$ 500,000 \\\text { Common } & 3,000,000 & 5,000,000\end{array}$$ One of the tax consequences of this estate freeze is:

• A)Dustin's gross estate includes $0 as to the stock.
• B)Dustin's gross estate includes $5,000,000 as to the stock.
• C)Dustin made a gift of $400,000 in 1995.
• D)Dustin made a gift of $3,400,000 in 1995.
• E)None of the above is correct.

---

Definitions:

Armaments

Physical or biological weapons used by organisms, such as horns or venom, to defend themselves, fight, or deter predators.

Male Paternity

Relates to the genetic fatherhood in species, often investigated in the context of paternity assurance and reproductive strategies.

Non-Sex Role Reversed Species

Species in which traditional sex roles (e.g., females as the primary caregivers) are maintained and there is no reversal of these roles.

Sex Role Reversal

A situation in mating systems where the traditional reproductive roles and behaviors are exchanged, with females exhibiting traits typically associated with males and vice versa.