I have the correct answer for 37), but could use some assistance in solving for 38). Thank You.

37) LO.6,7 At the time of his death this year on September 4, Kenneth owned the following assets, among others:

In October, the executor of Kenneths estate received the following: $120,000 interest on the City of Boston bonds ($10,000 accrued since September 4) and a $7,000 cash dividend on the Brown stock (date of record was September 5). The declaration date on the dividend was August 12.

The $600,000 loan was made to Brad in late 2015, and he used the money to create a very successful business. The note was forgiven by Kenneth in his will.

What are the estate tax consequences of these transactions?

38) LO.6 Assume the same facts as in Problem 37) with the following modifications. What amount is included in Kenneths gross estate?

- The bonds were issued by the Houston (TX) Independent School District.

- The dividend record date was September 3 (not September 5).