Question - Arlene's estate includes the following assets.
Fair market value
Date of death six months later
Apartment building $4400000 $4380000
Stock in Red Corporation 1200000 1300000
Stock in Tan Corporation 900000 700000
Accrued rents on the apartment building are as follows: $70000(date of death) and $60000(six-months later). In order to pay expenses, the executor of Arlene's estate sells the Tan stock for $600000 eight months after her death.
a. If the 2032 election is made, how much is included in Arlene's gross estate?
b. As to part (a), assume the Tan stock is sold for $600000 five months (rather than eight months) after Arlene's death. How does this change your answer, if at all?
c. How much is included in the gross estate if the 2032 election is not made?