Compute the Undervaluation Penalty for Each of the Following Independent

question 12

Essay

Compute the undervaluation penalty for each of the following independent cases involving the executor's reporting of the value of a closely held business in the decedent's gross estate. In each case, assume a marginal Federal estate tax rate of 40%. $\begin{array}{lrr} & \text { Reported Value } & \text { Corrected IRS Value } \\\text { a. } & \$ 10,000 & \$ 20,000 \\\text { b. } & 60,000 & 100,000 \\\text { c. } & 80,000 & 150,000 \\\text { d. } & 50,000 & 300,000\end{array}$

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Definitions:

Shaping

An educational strategy where reinforcing actions that progressively mimic the sought-after behavior are employed.

Vocal Apparatus

The collective term for the organs and structures of the body involved in the production of voice and speech.

Rudimentary Language Skills

Basic abilities in understanding and using language, usually referring to the initial stages of language acquisition.

Symbolic Aspects

The representational features or meanings that objects, actions, or terms hold beyond their literal, tangible dimensions.