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Hun, age 93, has accumulated substantial assets during his life. Among his many

ID: 2579073 • Letter: H

Question

Hun, age 93, has accumulated substantial assets during his life. Among his many assets are the following, which he is considering giving to Koji, his grandson.

Asset   Adjusted Basis   Fair Market Value

Silver Corporation stock   $900,000   $700,000

Red Corporation stock   70,000   71,000

Emerald Corporation stock    200,000    500,000

Hun has been in ill health for the past five years. His physician has informed him that he probably will not live for more than six months. Advise Hun on which of the stocks should be transferred as gifts and which as inheritances.

Explanation / Answer

Answer :-

Stock Mode of transfer (Transferred by way of) Silver Corporation stock Inheritance. Red Corporation stock Gift. Emerald Corporation stock Inheritance.
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