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
mel-nik [20]
3 years ago
6

Using property she inherited, Lei makes a 2020 gift of $16,200,000 to her adult daughter, Doris. Neither Lei nor her husband, Gr

eg, has made any prior taxable gifts. Assuming that a flat 40% tax rate applies, determine the Federal gift tax liability if (a) the election to split gifts is not made and (b) the election to split gifts is made. (c) What are the tax savings from making the election
Business
1 answer:
weeeeeb [17]3 years ago
4 0

Answer:

a)$1,842,000

b) $808,500 each

c) $$1,842,000

Explanation:

Worth of Gift made = $16200000

Assuming a Flat rate of 40%

Determine federal gift tax liability

<u>a) When Election to split gift is not made </u>

Taxable gift = $162,000,000 - annual exclusion

                    = 162,000,000 - 15,000

                    = $16,185,000

Determine the Gift tax = [ 345800 + ( 16,185,000 - 1,000,000 ) 40% ]

                                     = $6419800

<em>  applying values gotten from computing tax table ( Appendix A )</em>

Given that the max credit allowed for 2020 = $4577800

hence Gift tax due = $1,842,000 ( 6419800 - 4577800 )

<u>b) If election to split is made  i.e. section 25I3 is elected </u>

Gift tax due =  $8,100,000 - $15,000 = $808,500 each ( Greg and Lei

i.e. For Greg and Lei

<u>c) Tax savings made </u>

Tax savings  =$1,842,000 ($1,842,000 -$0)

You might be interested in
Liam was the beneficiary of a life insurance policy on his wife. Liam had paid $20,000 in premiums on the policy. Be collected $
Lesechka [4]

Answer:

B. FALSE

Explanation:

7 0
3 years ago
Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's in
mamaluj [8]

Answer: Utilitarianism

Explanation:

Utilitarianism can he defined a moral theory that supports actions that boost overall pleasure or happiness and rebuff actions that lead to harm or unhappiness. A utilitarian philosophy aims to make the society a better place.

The maxim of utilitarianism is that a considerable amount of good should go to a considerable amount of people. Utilitarianism seeks to maximize well-being and happiness. Mama Diner's restaurant was closed because the principle of utilitarianism was not followed because handicapped students couldn't make use of bathroom stalls.

For example, if there is a new disease that kills people instantly when the affected person coughs around other people, the government might be forced to kill the person in order to save others.

8 0
3 years ago
When the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip and still continued to produce all of its other Coo
Mashutka [201]

If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.

<h3>What is line extension?</h3>
  • The process of expanding an established product line is referred to as line extensions.
  • When a corporation with a well-known brand releases new items in a product segment.
  • The corporation capitalizes on the existing product's value to the market and presents new options to consumers.
  • A corporation launches a brand line extension by using the brand name of an existing product to launch a new, somewhat different item in the same product category.
  • Line extension would be demonstrated if the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip while continuing to produce all of its existing Cool Whip products.

Therefore, if the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.

Know more about  line extension here:

brainly.com/question/14720584

#SPJ4

The complete question is given below:
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of

a. a brand extension.

b. quality modification.

c. line extension.

d. a new-to-the-world product.

e. functional modification.

8 0
2 years ago
Swifty Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $41000 that will
cluponka [151]

Answer:

depreciation rate per unit $0.34

Explanation:

To calculate the depreciation cost per unit we divide the amount subject to depreciation by the estimated untis production over its useful life:

depreciable amount:

$41,000 - $3,600 = $ 37,400

depreciation rate:

$37,400 / 110,000 units = $0.34

8 0
3 years ago
Robert G. Flanders Jr., the state-appointed receiver for Central Falls, RI, said his city's declaration of bankruptcy had proved
valentinak56 [21]

Answer:

False

Explanation:

Missing question: <em>The ability to declare bankruptcy increased the disagreement value of the city during negotiation with the unions</em>

Alternatives available to an agreement determine the terms of an agreement. If bankruptcy is been declared in a situation where the cities can manipulate  and evade much of their pension obligations owed to unions, such scenarios gives the city a much better alternative, if the favorable agreement with the city's unions and retirees emerge.

7 0
3 years ago
Other questions:
  • ___________ is the stage of new-product development that involves promoting a product to distributors, and developing advertisin
    15·1 answer
  • Prepare for the DMV drive test by ensuring your_____ is in good operating condition.
    11·1 answer
  • Sweet Corporation owns machinery that cost $23,200 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $
    11·1 answer
  • Beta Corporation wrote off $100,000 due from a specific client in March 2011. However, this client was able to make a Partial pa
    12·1 answer
  • Coupon payments are fixed, but the percentage return that investors receive varies based on the market conditions. this percenta
    15·1 answer
  • When inflation was expected to be high and it turns out to be low, wealth is redistributed from debtors to creditors. / true or
    10·1 answer
  • That something unique your business should have which other business do not have ​
    10·1 answer
  • In the context of business ethics,. Involves clear misconduct, unline an ethical dilemma that involves a conflict
    11·1 answer
  • T or F #7 QUICK
    6·1 answer
  • You are planning a graduation trip to mexico. Other things the same, if the dollar appreciates relative to the peso, then:.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!