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Amiraneli [1.4K]
3 years ago
10

At her death Siena owned real estate worth $200,000 that was titled with her sister in joint tenancy with the right of survivors

hip. Siena contributed $50,000 to the total cost of the property and her sister contributed the remaining $75,000. What amount, if any, is included in Siena's gross estate?
A. $80,000.
B. $125,000.
C. $50,000.
D. $100,000.
E. None of the choices are correct.
Business
1 answer:
klio [65]3 years ago
4 0

Answer:

$80,000

Explanation:

Sienna owned $200,000 worth of real estate at her death

This real estate was titled with her sister in joint tenancy with the right of ownership

Sienna contributed $50,000 to the total cost of the property

Her sister contributed the remaining $75,000

The first step is to determine the portion contributed by Sienna

= $50,000/$50,000+$75,000

= $50,000/$125,000

= 0.4×100

= 40%

Therefore, the amount that should be included in Sienna's gross estate can be calculated as follows

= 40/100 × $200,000

= 0.4 × $200,000

= $80,000

Hence the amount that should be included in Sienna's gross estate is $80,000

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Rony as the managing director of a fabric manufacturing company enjoys an employee benefit called <u>perquisites</u><u> (D)</u>.

Let's discuss each employee benefit option we have:

Novated lease is an employee benefit that allows an employer pays for its employee car lease and car runnit costs out of its employee's salary package. An employee will choose a car he wants and a novated lease arrangement is set up between the employee, employeer, and car agent.  The employer then will pay directly to the car agent from the employee's salary. The employee may save tax and running costs using this kind of leasing.

Fiscal Incidence is the combined overall economic impact of both government taxation and expenditure on the real economic income of individuals. Fiscal incidence happens when the econonmic incidence of taxation is combined with the economic incidence of government expenditure. Fiscal incidence is the overall increase or decrease in welfare that individual enjoys from the state's taxing and spending policies.

Swaps is a derivative contract which stated that the two parties will exchange the cash flows or liabilities from two different financial instruments. Swaps usually are based on a notional principal amount. The most common kind of swap is an interest rate swap.

Perquisites or fringe benefits are benefits an employee received over and above his standard salary. Some of these components are taxed separately and someother are tax-exempted. Perquisites may be classified into 3 different types:

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By offering perquisites to its employee, a company may increase its employee productivity, loyalty and retention. Prequisites could also be used as an attraction for top talent.

Learn more about Employee Benefit here: brainly.com/question/12143528

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Complete Question:

Rony is the managing director of a fabric manufacturing company. In order to limit the profit of the company and therefore, the txes on the business the management pays a hefty amount to Rony as year-end bonuses. The company also pays for his family cavations and foreign trips. The benefits enjoyed by Rony are called ____

a. Novated leases

b. Fiscal incidences

c. Swaps

d. Perquisites

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