15-27. Gross Estate Inclusions. Q was a cash basis taxpayer who died in the current year. On the date of Qs death, he owned corporate bonds, principal amount of $50,000, with accrued interest of $3,950. On the date of death, the bonds were selling on the open market for $54,000. Six months later the market price of the bonds had dropped to $51,500; there was $3,200 of accrued interest on the bonds as of this date. Neither market price includes any payment for accrued interest.

A. Assuming the executor of Qs estate does not elect the alternate valuation date, what amounts should be included in Qs gross estate because of his ownership of the bonds?

B. Assuming the executor does elect the alternate valuation date, what mounts should be included in Qs gross estate?