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NEW QUESTION: 1
On February 1, 1993, Hall learned that he was bequeathed 500 shares of common stock under his father's will. Hall's father had paid $2,500 for the stock in 1990. Fair market value of the stock on February 1, 1993, the date of his father's death, was $4,000 and had increased to $5,500 six months later. The executor of the estate elected the alternate valuation date for estate tax purposes. Hall sold the stock for $4,500 on June 1, 1993, the date that the executor distributed the stock to him.
How much income should Hall include in his 1993 individual income tax return for the inheritance of the 500 shares of stock, which he received from his father's estate?
A. $2,500
B. $4,000
C. $0
D. $5,500
Answer: C
Explanation:
Explanation
Choice "d" is correct. There is no income tax on the value of inherited property. The gain on the sale is the difference between the sales price of $4,500 and Hall's basis. Hall's basis is the alternate valuation elected by the executor. This is the value 6 months after date of death or date distributed if before 6 months. The property was distributed 4 months after death and the value that day ($4,500) is used for the basis. $4,500 - $4,500 = 0.
Choice "a" is incorrect. There is no income tax on the value of inherited property.
Choice "b" is incorrect. This is the basis of the stock if the alternate date had not been used. Heirs are not taxed on inheritances. The income or loss results when inherited property is sold.
Choice "c" is incorrect. There is no income tax on the value of inherited property. The gain on the sale is the difference between the sales price of $4,500 and Hall's basis. Hall's basis is the alternate valuation elected by the executor.
NEW QUESTION: 2
How can the Cisco collaboration services layer of Cisco Collaboration Architecture help managers to measure KPIs?
A. The Cisco collaboration services layer is a standalone element of Cisco Collaboration Architecture and delivers services that directly improve business KPIs
B. The Cisco collaboration services layer delivers additional performance information to demonstrate increased business performance.
C. Cisco collaboration services and infrastructure layers compose Cisco Collaboration Architecture that improves technical KPIs.
D. Conferencing, IP communications, telepresence, and other Cisco collaboration services deliver additional information to show the increased business performance.
Answer: B
NEW QUESTION: 3
Which of the following statements regarding ACL type are true? (Select 3 answers)
A. ACL ranging from 3000 to 3999 belongs to advanced ACL
B. ACL ranging from 2000 to 2999 belongs to advanced ACL
C. Advanced ACL can be used to match either destination address or source address
D. ACL consists of basic ACL, advanced ACL and interface-based ACL
Answer: A,C,D
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