Ted Died on May 3

question 101

Multiple Choice

Ted died on May 3. At the time of his death, he owned a beach house valued at $250,000. On June 10, the beach house was completely destroyed by a hurricane and there was no insurance coverage. If the executor elects to use the alternate valuation date, the executor will

• A)include the beach house in the gross estate at $250,000.
• B)take a casualty loss of $250,000 on the estate tax return.
• C)take a casualty loss of $250,000 on the estate's income tax return.
• D)include the beach house in the gross estate at $0.

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Definitions:

Overgeneralization

The cognitive bias of applying a rule or conclusion too broadly across situations that don't necessarily fit.

Generalization

refers to the process of formulating broad statements or conclusions that apply to multiple instances from specific observations or limited examples.

Illogical Reasoning

A form of reasoning where conclusions are drawn or arguments made that do not follow logically from the premises or evidence provided.

Qualitative

Pertaining to or concerning the quality or nature of something, often used in research to describe non-numerical data gathered through observation, interviews, and narratives.