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VLD [36.1K]
3 years ago
11

In 2016, a grandfather gave a life estate to his grandson and a remainder interest to his granddaughter. Each interest is valued

at $13,000. The gift to the granddaughter is:
Business
1 answer:
ycow [4]3 years ago
7 0
The gift to the grandaughter is <span>Partially shielded by the annual gift tax exclusion.   In the year of 2016, the federal government created </span><span>the </span>estate<span> and gift </span>tax exemption<span> is $5.45 million per individual.
Which means that the inheritence that given to the granddaughter would be tax free as long as it does not surpass the net value of 5.45 million.</span>
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Answer:

The annual capacity is 85000 units. If order is accepted of 12000 units the company will be able to sell only 73000 units (instead of 78000).

Explanation:

Current Net Income calculation and New Net Income calculation are atteched in the archive.

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Contribution gain on special order – 12000 units x ($105-$90) = $180,000

(-) Contribution lost of normal sale – (78000 units – 73000 units) x ($120-$90) = $150000

Net INCREASE = 180000 – 150000 = $30,000

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