Morgan, a widow, recently passed away. The value of her assets at the time of death...

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Morgan, a widow, recently passed away. The value of her assets at the time of death was $10,530,000. The cost of her funeral

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Answer 1

Answer #1

Answers	Particulars	Amount in $
A.	Value of Morgan's Gross Estate	10,530,000


B.	Taxable estate	-
	(Taxable estate = Gross estate - deductions)
	Here Deduction is funeral & administrative tax
	(Taxable estate = 10,530,000 - 7,145 -38,296)
	Taxable estate	10,484,559

C.	Gift-Adjustable Taxable estate value:
	Taxable estate	10,484,559
	Charities will be deucted from tax calculation	935,171
	Gift-adjusted taxable estate value	11,419,730


D.	Estate would be subject to tax	11,419,730

E.	Estate tax liability Calculated below	2,431,892

	For estate more than 5,340,000 tax will be charged at 40%
	So, same is 40% of excess on 5,340,000
	Taxable estate before threshold after deducting 5,340,000 from estate that would be subject to Tax	6,079,730
	Tax @ 40% of excess value	2,431,892

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Answer 2

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Morgan, a widow, recently passed away. The value of her assets at the time of death...

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