1. Beverly Foster is planning for her retirement. She has determined that her car is worth $10,000, her home is worth $150,000, her personal belongings are worth $100,000, and her stocks and bonds are worth $300,000. She owes $50,000 on her home and $5,000 on her car. Calculate her net worth.

2. Calculate how much money an average older (65-74) household with pretax annual income of $52,366 spends on food each year. (Hint: Use Exhibit 14–3.)

3. On December 31, 2014, George gave $14,000 to his son and $14,000 to his son’s wife. On January 1, 2015, George gave another $14,000 to his son and another $14,000 to his son’s wife. George made no other gifts to his son or his son’s wife in 2014 and 2015. What was the gift tax?