If a Decedent Left Three Children and Five Grandchildren, Two

question 25

Multiple Choice

If a decedent left three children and five grandchildren, two of whom are the sons of a deceased daughter, and the per stirpes method of distribution is used, how much of the decedent's estate will the two children of the deceased daughter receive?

• A)One-eighth
• B)One-fifth
• C)None
• D)One-fourth

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Definitions:

Asset Sales

The process of selling assets of a company, often to generate cash or reduce liabilities.

Trade or Business

This refers to the regular and continuous operation of an activity with the purpose of earning income or profit.

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life to account for declines in value.

Ordinary Assets

Assets that are held for sale in the ordinary course of a business or are otherwise not capital assets, including inventory and property used in a trade or business.