Need Full Explain Please Assume For 2016 That Don Made One Transfer Involving Hi

Need full Explain…….Please …………………….

1.             Assume for 2016 that Don made one transfer involving his granddaughter as follows:  Don opened a joint checking account with his granddaughter, with right of survivorship, for her college expenses. Don made an initial deposit of $100,000. During 2016, granddaughter wrote checks on the account to the school for tuition of $15,000 and living expenses of $20,000. What is the amount of the taxable gift for federal  gift tax purposes?

a.             0.

b.             $6,000.

c.             $21,000.

d.             $35,000.

2.             Oliver gave his wife $5,250,000 worth of publicly traded stock in August 2016, outright. Oliver’s basis in the stock was $50,000. What is the amount of the taxable gift for federal gift tax purposes?  (Oliver will not have made any other gifts to anyone in 2016).

a.             0.

b.             $87,000.

c.             $100,000.

d.            $5,087,000. 

Prof. Angela


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