American College Exam HS330 Topic 1 Question 100 Discussion

Actual exam question for American College's HS330 exam

Question #: 100
Topic #: 1

Mr. Barlow died early this year. Under the terms of his will he left all his real estate and tangible personal property to his son. All the remainder of his probate estate was left to his wife, Mrs. Barlow. The following is a list of Mr. Barlow's probate assets and their fair market values at the time of his death:

Commercial real estate $200,000

Furniture and fixtures 100,000

Listed common stock 150,000

Notes receivable 250,000

In addition, Mrs. Barlow owned a $400,000 life insurance policy on Mr. Barlow's life with Mr. Barlow's estate designated as beneficiary. Based on this information, what is the amount of property in Mr. Barlow's estate qualifying for the federal estate tax marital deduction?

A$150,000

B$400,000

C$800,000

D$1,100,000

Show Suggested Answer

Suggested Answer: D

by Tracey at Sep 18, 2024, 11:44 AM

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Alexia

27 days ago

Wait, did Mr. Barlow have a pet rock? That could be worth a fortune and mess up the whole calculation!

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Enola

29 days ago

Alright, time to channel my inner tax accountant. This is going to be a breeze... I hope.

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Haydee

1 months ago

Hold up, does the marital deduction apply to the real estate and tangible personal property that went to the son? That could throw things off.

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Mayra

6 days ago

No, the marital deduction only applies to the property left to the wife.

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Luther

17 days ago

A) $150,000

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Leah

1 months ago

Ugh, estate tax questions always make my head spin. Let's see if I can figure this out.

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3 months ago

I think the answer is B) $400,000.

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