Chloe's Gross Estate Consists of the Following Property Valued at the Date

question 117

Multiple Choice

Chloe's gross estate consists of the following property valued at the date of death: Description $\quad\quad\quad\quad\quad$ Value
Real estate $\quad\quad\quad\quad\quad \$ 5,500,000$
Cash, stock, and bonds $\quad1,700,000$
Personal property $\quad\quad\quad 300,000$ Chloe's real estate is encumbered by a mortgage of $450,000, and Chloe's executor paid her funeral costs of $6,000 and charged fees for $24,000. Which of the following is a true statement?

• A) Chloe's adjusted gross estate is at least $7,020,000.
• B) Chloe's taxable estate is at least $7,020,000.
• C) Chloe's taxable estate is $7,050,000.
• D) Chloe's estate will calculate the tentative estate tax on $7.5 million.
• E) None of these is true.

---

Definitions:

Book Value

Book Value is the value of an asset according to its balance sheet account balance, taking into account the cost of the asset less any depreciation, amortization, or impairment costs.

Plant Assets

Long-term tangible assets used in the production and distribution of goods and services, such as buildings and machinery.

Accounting

The systematic process of recording, summarizing, and analyzing financial transactions of a business.

Accumulated Depreciation

The aggregate depreciation charged on a fixed asset since its acquisition.