Jose Dies in the Current Year and Has a Gross

question 33

Multiple Choice

Jose dies in the current year and has a gross estate valued at $8,000,000.Over the past ten years Jose had made taxable gifts of $400,000.The estate incurs funeral and administrative expenses of $100,000 and also pays off Jose's debts which amount to $300,000.Jose bequeaths $500,000 to his wife.What is the amount of Jose's tax base,the amount on which the estate tax is computed?

• A)$7,100,000
• B)$7,500,000
• C)$1,650,000
• D)$2,050,000

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Definitions:

Attention

The act of concentrating and focusing cognitive resources on a particular object, task, or event.

Memory

Refers to the processes used for acquiring, storing, retaining, and later retrieving information and past experiences.

Placebo

A harmless pill, medicine, or procedure prescribed more for the psychological benefit to the patient than for any physiological effect.

Harmless Pill

A placebo or inert medication designed to have no therapeutic effect, often used in clinical trials.