1. Table 2000 CM is based on 2000 Census data. It begins with 100,000 live births and shows how many are still alive at various ages (up to 110 years of age). The "CM" stands for cumulative mortality. These raw statistics can be used for a number of purposes. Answer each of the following independent questions relating to Table 2000 CM
A. 87,595
B. 60.6473%
C. 100%
D. 12.405%
E. 0%
F. 39.3527%
G. None of the other answers is correct
H. 87.595%
I. 34.471%
For each question below choose from A to I above
According to Table 2000 CM, starging with 100,000 live births, how many are still living at age 60?
According to Table 2000 CM, starging with 100,000 live births, what is the statistical probability of being alive at age 60?
According to Table 2000 CM, starging with 100,000 live births, what is the statistical probability of having died by age 60?
According to Table 2000 CM, what is the statistical probability of someone age 60 living to age 85?
2. For each of the following independent situations, give the answer requested. These computations are presented in Chapter 2
A. $324,436
B. $811,090
C. According to Table S (3.2% AFR), $1,000,000 is not sufficient to fund an annuity of $100,000. Accordingly, the value of the remainder interest is zero.
D. $633,370
A. $324,436
B. $811,090
C. According to Table S (3.2% AFR), $1,000,000 is not sufficient to fund an annuity of $100,000. Accordingly, the value of the remainder interest is zero.
D. $633,370
E. $471,510
F. $124,080
G. $675,564
H. $280,290
I. $188,910
J. $528,490
K. None of the other answers is correct
For each question below choose from A to K above
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for a period of 10 years, after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the income interest received by Kelley?
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for a period of 10 years, after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the remainder interest received by Lester?
Jacob placed into trust assets worth $1,000,000. Kelley is to receive from this trust an annual annuity of $100,000 for a period of 10 years, after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the income interest received by Kelley?
Jacob placed into trust assets worth $1,000,000. Kelley is to receive from this trust an annual annuity of $100,000 for a period of 10 years, after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the remainder interest received by Lester?
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for as long as she lives (Kelley's age is 65), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the income interest received by Kelley?
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for as long as she lives (Kelley's age is 65), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the remainder interest received by Lester?
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for as long as she lives (Kelley's age is 45), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the income interest received by Kelley? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this for as long as she lives (Kelley's age is 75), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the income interest received by Kelley? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard
Jacob placed into trust assets worth $1,000,000. Kelley is to receive from this trust an annual annuity of $100,000 for as long as she lives (Kelley's age is 45), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the remainder interest received by Lester? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive from this trust an annual annuity of $100,000 for as long as she lives (Kelley's age is 75), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the remainder interest received by Lester? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard.
3. In both the gift tax and the estate tax, a credit is allowed to reflect transfer tax paid on taxable gifts made in prior years. However, if the tax rates in the current year differ from the tax rates in force in the prior year, the credit allowed will not be the same as the taxes computed on the original gift tax return for the prior year. In this case, the credit must be recomputed using current rates. Answer each of the following questions relating to the credit for transfer taxes on prior year's taxable gifts. As a reminder, in the gift tax formula, the credit is the tentative tax on prior years' taxable gifts. In the estate tax, the credit is gift tax paid (i.e., reflecting the application of the unified credit in the year of the prior gift, with both the unified credit and the tentative tax recomputed if needed).
A. None of the other answers is correct
B. $0
C. $175,000
D. $600,000
E. $200,000
F. $525,000
G. $345,800
The current year is 2015. In 2009 a taxable gift of $1,500,000 was made, with gift tax due of $210,000. In the estate tax formula for 2015, what is the credit allowed for the 2009 gift tax?
The current year is 2015. In 2010 a taxable gift of $1,500,000 was made, with gift tax due of $175,000. In the estate tax formula for 2015, what is the credit allowed for the 2009 gift tax?
The current year is 2015. In 2013 a taxable gift of $1,500,000 was made, but no gift tax was due. In the estate tax formula for 2015, what is the credit allowed for the 2013 gift tax?
The current year is 2015. In 2005 a taxable gift of $1,500,000 was made, with gift tax due of $210,000. In the gift tax formula for 2015, what is the credit allowed for the 2009 gift tax?
4. Answer each of the following independent questions
In 1996, the unified credit $192,800. In that year, what was the AEA?
The AEA for the estate tax was $3,500,000 in 2009. What was the estate tax unified credit?
For most of the first 10 years of the 21st century, the gift tax AEA was $1,000,000. For those years, what was the gift tax unified credit?
In 2015, the AEA was $5,430,000. What was the unified credit in that year?
A. $2,117,800
B. $1,455,800
C. $600,000
D. $345,800
E. $5,430,000
F. $3,500,000
G. None of the other answers is correct
H. $1,000,000
I. $192,800
The applicable exclusion amount (AEA) was indexed for inflation beginning with transfers in 2012. Prior to that time, the AEA was a static statutory amount. However, under EGTRRA, and even previous legislation, the amount of the AEA frequently changed -- usually increasing. Provide the AEA for each of the following independent situations
The taxable event was a death in 2005
The taxable event was a gift in 2005.
The taxable event was a death in 2009
The taxable event was a gift in 2009
The taxable event was a death in 2011
The taxable event was a gift in 2011
The taxable event was a death in 2015
The taxable event was a gift in 2015.
Choose answer from A to I bellow
A. $5,120,000
B. $1,000,000
C. $5,250,000
D. $3,500,000
E. $5,000,000
F. $1,500,000
G. None of the other answers is correct
H. $5,430,000
I. $2,000,000
For each of the following independent situations, determine the transfer tax due on the taxable transfer
The taxable event was $3,500,000 taxable gift (i.e., annual exclusion already subtracted) made in 2015.
The taxable event was a 2012 death leaving a taxable estate of $8,500,000.
The taxable event was a 2009 death leaving a taxable estate of $3,500,000.
The taxable event was $3,500,000 taxable gift (i.e., annual exclusion already subtracted) made in 2009
Choose answer from A to H below
A. $1,183,000
B. $0
C. $2,250,000
D. $0
E. $1,110,000
F. None of the other answers is correct
G. $1,352,000
H. $1,228,000
For each of the following independent situations, determine the tentative tax on the taxable transfer.
The amount of the taxable transfer was $3,500,000 made in 2015
The amount of the taxable transfer was $3,500,000 made in 2012
The amount of the taxable transfer was $8,500,000 made in 2015
The amount of the taxable transfer was $8,500,000 made in 2012.
The amount of the taxable transfer was $3,500,000 made in 2009.
The amount of the taxable transfer was $8,500,000 made in 2009.
Choose answer from A to K below
A. $1,455,800
B. $1,345,800
C. $1,205,800
D. $3,345,800
E. None of the other answers is correct
F. $1,183,000
G. $2,955,800
H. $3,705,800
I. $1,228,000
J. $0
K. $2,250,000