Communications

Critical Thinking

L$0\mathrm{.}3,5$ Ichiro, age $93,$ has accumulated substantial assets during his life: Among his many assets are the following, which he is considering giving to Koji, his grandson.

Asset

Silver Corporation stock

Red Corporation stock

Emerald Corporation stock

Adjusted Basis

$$900,000$

$70,000$

$200,000$

$200,000$

Fair Market Value

$$700,000$

$71,000$

$500,000$

Ichiro has been in ill health for the past five years. His physician has informed him that he probably will not live for more than six months. Which of the stocks should be transferred as gifts and which as inheritances? Summarize your answer in a twoto three$-$paragraph e$-$mail to your instructor.