Assume That Bob Smith Dies on May 25, 2011

Assume that Bob Smith dies on May 25, 2011. Mr. Smith's assets include the following: ABC Stock costing $30,000 but valued at $40,000; a house costing $280,000 but valued at $620,000; life insurance in the amount of $600,000; and cash from various sources totaling $50,700. Three credit cards in Mr. Smith's name had balances totaling $8,530 on the date of death. The estate paid funeral and final medical expenses in the amount of $50,492. There were no charitable gifts designated by the will, and Mr. Smith was single at the time of his death. What is the amount of the taxable estate?

A) $901,678.
B) $1,251,678.
C) $1,268,738.
D) $1,310,700.
E) $651,678.

Correct Answer:

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