Mr Lainson Died This Year on a Date When the Total

question 4

Multiple Choice

Mr. Lainson died this year on a date when the total FMV of his property was $12 million and his debts totaled $450,000. His executor paid $15,000 of funeral expenses and $50,000 of accounting and legal fees to settle the estate. Mr. Lainson bequeathed $1 million to Villanova University, $200,000 to the Lutheran church, and $3 million to his surviving wife. He left the remainder of the estate to his children. Compute Mr. Lainson's taxable estate.

• A) $10,285,000
• B) $6,850,000
• C) $6,800,000
• D) $6,785,000

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Definitions:

Supplier

A person or organization that provides goods or services to another entity, typically as part of a supply chain.

Cash

Currency and other liquid instruments in a financial system or on a company's balance sheet used for transactions or settling debts.

Inventory

The goods and materials that a business holds for the purpose of resale or production.

Credit

The trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources at a later date.