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Business, 29.07.2020 05:01 kaitlyn1152

While vacationing in Florida in November, Sally was seriously injured in an automobile accident. Sally died several days later. How are the following transactions handled for tax purposes? A. Bruce, Sally's son and executor, incurred $6,200 in travel expenses in flying to Florida, retrieving the body, and returning it to Frankfort, Kentucky, for burial.
B. Sally had pledged $50,000 to the building fund of her church. Bruce paid this pledge from the assets of the estate.
C. Prior to her death, Sally had promised to give her nephew, Gary, $20,000 when he passed the bar exam. Gary passed the exam late in the year, and Bruce kept Sally's promise by paying him $20,000 from estate assets.
D. At the scene of the accident and before the ambulance arrived, someone took Sally's jewelry (i. e., Rolex watch and wedding ring) and money. The property (valued at $33,000) was not insured and was never recovered.
E. As a result of the accident, Sally's auto was totally destroyed. The auto had a basis of $52,000 and a fair market value of $28,000. In January of the next year, the insurance company pays Sally's estate $27,000.

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