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.

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Definitions:

Domestic Tasks

Activities and chores performed in the household, including cooking, cleaning, childcare, and maintenance, traditionally viewed as the responsibility of family members.

Gender Discrimination

Unfair or unequal treatment of individuals based on their gender, often resulting in disadvantages in employment, education, and other arenas.

Hostile Environment Harassment

Behavior that creates an intimidating, offensive, or oppressive atmosphere, often concerning sexual harassment in the workplace.

Quid Pro Quo Harassment

A type of sexual harassment where a person in power demands sexual favors in exchange for job benefits or avoiding negative job consequences.