2. (TCO 9) Maude died during 2011, leaving an estate valued at $4,200,000 at her date of death. The estate had land valued at $3,000,000 and dividends valued at $1,200,000. At the 6-month alternate valuation date, the estate had a value of $4,800,000 with the land valued at $4,000,000 and the dividends valued at $800,000. Which statement is correct about Maude’s estate? (Points : 2) |
Maude’s estate should elect the alternate valuation date with the estate value of $4,800,000. Maude’s estate should not elect the alternate valuation date, and the estate value will be $4,200,000. Maude’s estate should value the land at the date of death of $3,000,000 and elect the alternate valuation for the dividends of $800,000 so the total estate value would be $3,800,000. Maude’s estate should value the dividends at the date of death of $1,200,000 and elect the alternate valuation for the land of $4,000,000 so that total estate value would be $5,200,000. |