1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Phantasy [73]
4 years ago
15

Paula, a single woman, transferred $2,000,000 to a GRAT naming her two sons as the remainder beneficiaries, while retaining an a

nnuity with a present value of $860,000. If this is the only transfer that Paula made during the year, what is Paula's total taxable gift for the year?
Business
1 answer:
Lelechka [254]4 years ago
5 0

Answer:

$1,140,000

Explanation:

A grantor retained annuity trust (GRAT) is used to lower taxes on financial gifts. After a certain time (it is not specified in the question) Paula's sons will receive the money left in the GRAT tax free.

To calculate Paula's taxable gift we have the total GRAT value minus the value of the annuity she retained for herself:

$2,000,000 - $860,000 = $1,140,000

You might be interested in
Jeremy is 7 years old and has been asked to balance a scale with weights that can be hooked to the arms of the scale. jeremy wil
lutik1710 [3]
Since Jeremy is a child, he will not take note of the proper thing to do but only do it in a simple way of how he is asked. It is likely that he will only place the weights in the balance without even considering the distance from the center of the scale. It is not likely that he would think of that because he is still a child.
4 0
4 years ago
During an ice hockey game, Claude silently skates up to Gordie from behind and hits him over the head with his stick. Claude is
OverLord2011 [107]

Answer:

battery

Explanation:

Based on the information provided within the question it can be said that If Gordie sues Claude, Claude would be guilty of battery. In the context of criminal behavior, Battery refers to the crime of being aggressive and making contact with another person, with or without his or her consent. It is a type of assault charge but the person must have made physical contact with the victim.

4 0
3 years ago
Financial experts advise you will need approximately how much of your pre-retirement income in order to maintain your standard o
Verdich [7]
<span>Financial experts advise you will need approximately 80 percent of your pre-retirement income in order to maintain your standard of living after you retire.
So, let's say that you earned 3,000 dollars a month while you were still working. That would mean that you would need at least 2,400 dollars when you retire if you want to keep on living practically the same as you did while you still had a job.
</span>
3 0
4 years ago
1. Explain who the Lemon Law protects.
PilotLPTM [1.2K]
It's to insure that manufacturers honor their warranties and to reduce the chance that a consumer will be misled about the nature of the purchase.
8 0
4 years ago
When you should send an email?
shepuryov [24]

When the subject addresses something meant to occur in the future, or impact the future

8 0
4 years ago
Read 2 more answers
Other questions:
  • On June 30​, 2017​, Austin Sound Center purchased a copy machine for $ 50 comma 000. Austin Sound Center expects the machine to
    15·1 answer
  • Dybala corporation produces and sells a single product. data concerning that product appear below: the company is currently sell
    7·1 answer
  • One of the most common mistakes new business owners make is
    12·1 answer
  • Simone Lowes, a successful retail chain from Spain, failed to establish its market in Germany. The main reasons for its failure
    8·1 answer
  • Strategic alliances refer to a.Multinational firms that have as many different product variations, brand names, and advertising
    11·1 answer
  • Mike's Auto Repair works hard to find out what customers want and how to best meet their needs. Based on feedback from customers
    6·1 answer
  • The Chicken Union has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of
    14·1 answer
  • Using the dividend growth model, explain why a firm would be hesitant to reduce the growth rate of its dividends.
    11·1 answer
  • What is one typical effect of growth for a business?
    14·1 answer
  • True or False: An individual investor is more likely to engage in foreign direct investment than a corporation. True False
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!