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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?

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Suggested Answer: D

Contribute your Thoughts:

Tijuana
18 days ago
B is not correct. Certain U.S. Treasury bonds used to pay federal estate taxes are valued at par, not their market price on the date of death.
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Charlie
1 days ago
C) When a minority stockholder in a closely held corporation dies, his stock is valued on the basis of the 'blockage' rule.
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Mammie
2 days ago
A) 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 its average daily price for the previous month prior to the shareholder's death.
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Marylyn
1 months ago
Haha, I bet the IRS has a field day trying to figure out the value of that closely held stock. Better call in the accountants for that one!
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Malika
7 days ago
I heard they have to consider a lot of factors according to IRS rules.
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Fletcher
9 days ago
Yeah, valuing closely held stock can get pretty complicated.
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Malcolm
1 months 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.
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Jaime
2 days ago
D is correct too. Valuing closely held stock requires consideration of factors outlined by IRS rulings.
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Sharika
22 days ago
C is also correct. When a minority stockholder in a closely held corporation dies, his stock is valued on the basis of the 'blockage' rule.
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Jina
29 days ago
B is correct. Certain U.S. Treasury bonds used to pay federal estate taxes at par are valued at their market price on the date of death.
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Bok
2 months ago
But what about option A? It seems reasonable to use the average daily price for the previous month.
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Makeda
2 months 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.
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Audra
13 days ago
That makes sense. It's important to take all those factors into account when valuing closely held stock for estate purposes.
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Tamekia
23 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.
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Elke
2 months ago
I agree with Rocco, because IRS rulings provide guidance on valuing closely held stock.
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Rocco
2 months ago
I think the correct statement is D.
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