Tracey Is Unmarried and Owns $7 Million in Stock and Bonds

question 106

Multiple Choice

Tracey is unmarried and owns $7 million in stock and bonds. What is the result if Tracey dies this year and leaves all of her property to a qualified charity?

• A) Tracey's gross estate will be zero.
• B) Tracey's estate tax basis will be zero.
• C) Tracey's taxable estate will be zero.
• D)Tracey's estate will have a tentative estate tax of zero.
• E)None of these

---

Definitions:

Income Statement

An account that tracks a business's financial transactions, including income and expenditures over a designated timeframe, leading to a final profit or loss.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing shares, taking out loans, and paying dividends.

10-Year Bond

A debt security issued by governments or corporations with a fixed interest rate and maturity of ten years.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.