American College Exam HS330 Topic 1 Question 56 Discussion

Actual exam question for American College's HS330 exam

Question #: 56
Topic #: 1

Generally the courts will accept as the federal estate tax value of a closely held corporate business the price established by a buy-sell agreement if all the following conditions are met EXCEPT:

AThe agreement requires the payment of liquidated damages to the survivors if the executor fails to carry out its terms.

BThe agreement as to per-share value is fair, adequate, and made at arm's length.

CThe agreement requires a deceased share holder's executor to sell the stock at the price specified in the agreement.

DThe agreement requires a shareholder to first offer his stock to the corporation or other shareholders at the specified price if he wishes to sell it during his lifetime.

Show Suggested Answer

Suggested Answer: A

by Whitley at Jul 29, 2022, 03:34 AM

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