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:

ATP Synthase

An enzyme that plays a key role in the process of cellular respiration, synthesizing ATP from ADP and inorganic phosphate during the process of oxidative phosphorylation.

Thylakoid Membrane

A membrane-bound compartment inside chloroplasts and cyanobacteria, involved in the light-dependent reactions of photosynthesis.

Stroma

The supportive tissue of an epithelial organ, tumor, gonad, etc., consisting of connective tissues and blood vessels.

Thylakoid Compartment

A membrane-bound compartment inside chloroplasts and cyanobacteria that is the site of the light-dependent reactions of photosynthesis.