Harold and Mary Are Married and Live in a Community-Property

question 123

Multiple Choice

Harold and Mary are married and live in a community-property state. During the marriage Harold bought a parcel of real estate for $100,000 in community funds and titled the property in his name alone. Mary died on January 30 ^th of this year and was survived by Harold, who did not remarry. The parcel of real property was worth $250,000 on January 30 ^th of this year but was only worth $220,000 at year-end. What amount, if any, is included in Mary's gross estate?

• A)$250,000.
• B)$220,000.
• C)$125,000.
• D)$110,000.
• E)zero-Mary had no ownership interest in the property at her death.

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Definitions:

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often reinvested in the business.

Intrapreneurs

Employees within a company who are assigned to work on a special idea or project and are given the freedom to develop the project as an entrepreneur would.

R&D Activities

Activities centered around research and the development of new products, services, or processes.

Salaried Employees

Individuals who receive a fixed compensation from their employer regularly, typically on a monthly or annual basis, regardless of the number of hours worked.