Problem
Mr. Ash died on June 15 of the previous year. The assets in his estate were valued on his date of death and alternate valuation date, respectively, as follows:
|
Date of Death
|
Alternate
|
|
Asset
|
Valuation
|
Valuation
|
|
Home
|
$2,500,000
|
$3,000,000
|
|
Stock
|
4,250,000
|
4,500,000
|
|
Bonds
|
2,000,000
|
1,250,000
|
|
Patent
|
1,000,000
|
950,000
|
The patent had 10 years of its life remaining at the time of Mr.Ash's death. The executor sold the home on August l of the previous year for $2,750,000. If Mr.Ash's executor elects the alternate valuation date method, what is the value of Mr. Ash's estate?