1. Salsa Company's equity accounts consist of capital stock of $1,500,000 and retained earnings of $500,000. Prance Company pays $8,000,000 for all the voting stock of Salsa Company. The fair value of Salsa's identifiable net assets is $6,200,000 greater than book value. Salsa uses pushdown accounting to revalue its net assets at the date of acquisition. Eliminating entry (E) on the consolidation working paper includes A. A $500,000 credit to retained earnings. B. A $500,000 debit to retained earnings. C. A $6,000,000 debit to pushdown capital. D. A $6,700,000 debit to pushdown capital.

In 2015, lori assigned a paid-up whole life insurance policy to an irrevocable life insurance trust (ilit) for the benefit of her three children. the ilit contained a crummey provision for the benefit of each child. at the time of the transfer, the whole life insurance policy was valued at $200,000, and since lori had not made any other taxable gifts during her lifetime, she did not owe any gift tax. lori died in 2016, and the face value of the whole life insurance policy of $2,000,000 was paid to the ilit. regarding this transfer, how much is included in lori’s gross estate at her death?