Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25

- Free Preparation Discussions

American College Exam HS330 Topic 1 Question 68 Discussion

Actual exam question for American College's HS330 exam

Question #: 68
Topic #: 1

[All HS330 Questions]

Which of the following statements concerning the valuation of intangible personal property in the gross estate of a decedent is correct?

AIf there were no trades of a listed common stock on the date of the stockholder's death, the stock's value is based on its average daily price for the previous month prior to the shareholder's death.

BCertain U.S. Treasury bonds that are used to pay federal estate taxes at par are valued at their market price on the date of death of the owner.

CWhen a minority stockholder in a closely held corporation dies, his stock is valued on the basis of the ''blockage'' rule.

DValuing closely held stock requires the consideration of several factors outlined by IRS rulings.

Show Suggested Answer

Suggested Answer: D

by Denise at Mar 30, 2023, 11:56 PM

Limited Time Offer

25%

Off

Get Premium HS330 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Malcolm

6 days ago

A is not correct. If there were no trades of a listed common stock on the date of the stockholder's death, the stock's value is based on the average of the high and low prices on the valuation date, not the previous month.

upvoted 0 times

...

Bok

13 days ago

But what about option A? It seems reasonable to use the average daily price for the previous month.

upvoted 0 times

...

Makeda

14 days ago

D is the correct answer. The valuation of closely held stock requires the consideration of several factors outlined by IRS rulings, such as the company's financial condition, earning capacity, and market for the stock.

upvoted 0 times

...

Elke

17 days ago

I agree with Rocco, because IRS rulings provide guidance on valuing closely held stock.

upvoted 0 times

...

Rocco

19 days ago

I think the correct statement is D.

upvoted 0 times

...

az-700 pass4success az-104 200-301 200-201 cissp 350-401 350-201 350-501 350-601 350-801 350-901 az-720 az-305 pl-300

Warning: Cannot modify header information - headers already sent by (output started at /pass.php:70) in /pass.php on line 77