Ann, who died in January 2012, was survived by her husband, Jack. Ann and Jack were married in 1996. Ann's federal gross estate was equal to...

1. Ann, who died in January 2012, was survived by her husband, Jack. Ann and Jack were married in 1996. Ann’s federal gross estate was equal to $6,000,000 on the date of her death. When Ann died, Ann’s assets included an undeveloped parcel of real estate in Jacksonville in the names of “Ann and Jack, as joint tenants with right of survivorship.” The fair market value of the land on the date of Ann's death was $750,000. Jack provided all of the consideration for the purchase of the land, paying $200,000 for it in 2000. Alternate valuation is not available to Ann’s estate as all assets owned by Ann will pass, either under Ann’s last will and testament or by operation of law, to Jack. What is Jack’s basis in the real estate after Ann’s death?a.$200,000.b.$375,000.c.$475,000.d.$750,000.In 2012, Ann made a gift of stock (basis of $813,000; fair market value of $413,000) to her mother, Lulu. As a result of the transfer, Ann paid a gift tax of $60,000. Lulu’s income tax basis in the stock is:a.$413,000 basis for gain and loss if Lulu sells the property.b.$443,000 basis for gain and loss if Lulu sells the property.c.$813,000 basis if Lulu sells it for gain and $413,000 basis if Lulu sells it at a loss.d.$873,000 basis for gain and loss if Lulu sells the property.e.None of the above.3. At the time of his death in January 2013, John owned land with his mother, Ann, as tenants in common. John and Ann purchased the property in 2010 with each paying $150,000 of the $300,000 purchase prince. The fair market value of the entire land was $600,000 on the date of John’s death and $600,000 on the date that was six months after John’s death. John’s mother was the sole beneficiary under John’s will. John’s gross estate for federal estate tax purposes was $1,000,000 on the date of his death. What is John’s mother’s total basis in the real estate once she has title to the entire parcel? Assume that the fair market value of the property is still $600,000 on the day that Ann receives title to the entire property.$150,000.$300,000.$450,000.d. $500,000.4. At the time of his death in January 2013, John owned real estate in the name of John and his sister Ann, as joint tenants with right of survivorship. John and Ann purchased the property in 2010 with each paying $150,000 of the $300,000 purchase prince. The fair market value of the entire land was $600,000 on the date of John’s death and $600,000 on the date that was six months after John’s death. John’s mother was his sole beneficiary under his will. The property owned by John and Ann has not been sold within six months after Nick’s death. John’s gross estate for federal estate tax purposes was $1,000,000 on the date of his death. What is Ann’s total basis in the real estate after John’s death?a. $150,000.b. $300,000.c. $450,000.d. $500,000. 5.If an election is available and is made to use alternate valuation for federal estate tax purposes, then if a parcel of real estate owned by the decedent is distributed within six months after the decedent’s death, the parcel of real estate is valued for federal estate tax purposes as of which date?a.The date of the decedent’s death.b.The date that is six months after the decedent’s of death.c.The date of sale of the property.d.The date the property is distributed to the beneficiaries.5.Susan, a widow, died on October 31, 2012. Susan had never made any taxable gifts during her lifetime. On her death, she owned the following property: A vacation beach house that had a basis to Susan of $3,000,000 and a fair market value on the date of Susan's death of $2,000,000, a vacant lot that she owned with her sister Mel, as tenants in common. At Susan's death, her basis in her interest in the lot was $2,000,000, and the fair market value of her interest in the lot was $2,000,000. Susan owned publicly traded stock with a basis of $1,500,000 and a fair market value of $1,000,000 that was held in a transfer on death account, her sister Mel being the beneficiary. (Assume all assets have the same value on the alternate valuation date as on the date of death). What is the amount of Susan’s gross estate for federal estate tax purposes?0b.$4,000,000.c. $5,000,000. d. $6,500,000.With respect to Susan’s estate as set forth in question 29, a Federal Estate Tax Returna.is due nine months after the date of Susan death.b.is not required to be filed.c.is due on the same date as her final income tax return.d.none of the above.7.Assume for 2013 that Bob made one transfer involving his grandson as follows: Bobopened a joint checking account with his grandson, with right of survivorship, for his grandson’s college expenses. Bob made an initial deposit of $100,000. During 2013, grandfather wrote checks on the account to the university for grandson’s tuition of $15,000 and grandson’s living expenses of $20,000. What is the amount of the taxable gift for federal gift tax purposes?a.0.b.$6,000. c.$20,000. d.$35,000. 8.On January 2, 2012, Steve and Jeanne created WHEELE Corporation. Steve contributed to WHEELE Corporation assets worth $100,000 that had an aWheeleusted basis to Steve of $14,000. The contributed assets were subject to a liability of $16,000. In exchange for his contribution to WHEELE Corporation, Steve received 80 percent of the shares of WHEELE Corporation. WHEELE Corporation filed a timely and proper S election effective as of January 2, 2012. Steve also guaranteed a corporate loan made by The Bank in the amount of $6,000. What is Steve’ aWheeleusted basis in the stock he received from WHEELE Corporation?a. $14,000.b. $16,000.c. $22,000.d. $106,000.For 2012, WHEELE Corporation had an operating loss of $44,000. Without regard to any at risk or passive activity loss limitation, what is the amount of SJ Corporation’s loss that Steve may deduct on his individual income tax return for 2012?a. $14,000.b. $16,000.c. $22,000.d. $35,20010.Which of the following trusts is eligible to be an S corporation shareholder?a. An electing small business trust.b. A revocable inter vivos grantor trust, during the grantor’s life.c. A qualified subchapter S trust.d. All of the above.11. Ed is a 50 percent partner in EFGH Partners, a general partnership. Ed’s adjusted basis in his partnership interest is $36,000. During the current taxable year, Ed received a non-liquidating distribution of land from EFGH Partners that had an adjusted basis to the partnership of $46,000 and a fair market value of $90,000 on the date of distribution. What is Ed’s basis in the land received in the non-liquidating distribution?a.0.b. $36,000.b. $46,000.c. $90,000.12. On which of the following grounds may an S corporation lose its S status?a. The corporation issues a second class of common stock that is nonvoting common stock.b. The corporation has a resident alien shareholder.c. The number of unrelated shareholders is less than 100.d. None of the above.