Hi All,
Tough Simulation Here: Simulation # 65 – Asset Valuation (you can skim through the Full TBS I copied/paste down below)
QUESTION – Did anybody find a great explanation answer for the below Simulation # 65?
The executor of Munson's estate made the election to adopt the alternative valuation date for the estate's assets. The estate of Munson is composed of the following assets:
Fair Market Value Asset
April 1, Year 2
(Date of Death)
October 1, Year 2
6,000 share of Bartlet Corp. common stock
$600,000
$552,000
$200,000 Zenon Corp. 3% 20-year bonds, due Year 16.
Interest payable quarterly on February 1, May 1, August 1,
and November 1.
$200,000
$195,000
$320,000 Vision Corp. 5% 15-year bonds, due Year 13.
Interest payable quarterly on January 1, April 1, July 1,
and October 1.
$320,000
$310,000
The executor provided the following information relating to the administration of the estate.
Interest accrued on the Zenon bonds from February 1 to April 1, Year 2, was deposited by the executor on May 1, Year 2.
Interest accrued on the Vision bonds from January 1 to April 1, Year 2, was deposited by the executor on May 1, Year 2.
A cash dividend of $2 per share was declared by Bartlet on March 10, was paid on April 1, Year 2, to holders of record on March 31, Year 2, and was deposited by the executor on April 15, Year 2.
On July 1, Year 2, 2,000 shares of Bartlet were distributed to a beneficiary when the fair market value was $96 per share.
On July 31, Year 2, 1,000 shares of Bartlet were sold for $97 per share.
On August 15, Year 2, the Zenon bonds were distributed to a beneficiary with a value of $194,000 on the date of distribution.
The Vision bonds and the remaining 3,000 shares of Bartlet were not sold or disposed of within six months following death and remained in the estate.
Click the shaded cells in the “Alternative Value” column and enter the value for each assets that would be reported on the federal estate tax return using the alternative valuation date. If a response is zero, enter a zero (“0”).
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