Joyce Passed Away on January 3 While on an Extended

question 26

Multiple Choice

Joyce passed away on January 3 while on an extended holiday cruise celebrating a very successful, and most profitable, previous year. Joyce was the chief executive officer of the Quillip Corporation. After the independent audit of Quillip's last year's financial statements was completed in February of this year, Joyce's estate received a $1,000,000 bonus check resulting from last year's corporate profits. Joyce's estate also sold Quillip stock for $500,000 in February of this year. Joyce originally purchased this stock eight years ago for $10,000. The stock was valued at $495,000 on her date of death. Solely based on the above facts, how much income in respect of a decedent should Joyce's estate report in the current year?

• A)$1,485,000
• B)$1,000,000
• C)$485,000
• D)$5,000

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Definitions:

Homicide

is the act of killing another human being, whether lawfully or unlawfully.

Social Classes

Categories of people within society distinguished by relative levels of power, wealth, or status.

Homicide Rates

The frequency or number of homicides (intentional killings of one person by another) within a specified geographic area over a defined period of time.

Industrialized Countries

Industrialized countries are nations characterized by a significant level of industrial activity, technological advancement, and higher living standards.