This is all we are provided. Tax rates can be seen at the bullet points. Assume the basis for the Microsoft stock is its pre-appreciation value of $20billion. Basis of DaVinci manuscript is its pre-appreciation value $31million.

Bill Gates is one of the wealthiest individuals in the United States, with a carrent net worth estimated to be 121 billion dollars. (Hayes, 2022 ). The majority of his net worth was derived from his ownership in Microsoft Comptation. He owns approximately 1.3 percent of its shares currently valued at 20 billion dollars . Since his departure fromt Microsoft management in 2014 , he has diversified his investrnents to include other investments in other companies, real estate holdings and collectables, among other things. (Hayes, 2022) Much of Bill Gates' stockholdings are held in Cascade Investments, LLC, a wholly owned investment company. Its estimated current value is 35 billion dollars, (Hayes, 2022) He also has significant real estate holdings, including his Xanadu home in the Seattle area valued at 131 million dollars, a Wellington Flonida horse ranch valued at 8.7 million dollars, and the Grand,Bogae Caye Island near Belize, valued at 25 million dollars. (Hayes, 2022). Mr. Gates has invested in collectables, too, such as a Leonardo Davinci manuscript called Codex Leicester, valued at 31 mallion dollars and several paintingx, inelading Andrew Wyeth's "Distant Thunder" valued at 7 million dollars and Frederick Childe Hassam's "Room of Flowers" worth 20 million dollars. (Hayes, 2022). Assume Mr. Gates' portfolio of investments experiences the following results in 2023; - His tradeable Microsoft stock appreciates by 10 percent from its 2022 value of 20 billion dollars, based upon 2023 -ycar end New York Stock exchange values - The non-tradeable Davinci manuseript has not been revalued since 2022, when it carried a 31-million-dollar value. Hewever, under the Greenbook's guidelines, page 35, it will be revalued using the five-year Treasury interest rate plus two percent. The current five-year Treasury rale is 3.26, resuliing in an appreciation rate of 5.26 percete - Mr. Gates' 2023 regular tax liability is $240,000,000 (based on a 40% tax rate given 600 million dollars of regular taxable income). THE CASE DISCUSSION QUESTIONS Address the following questions 1. What will the proposed tax on unrealized gains apply to? 2. How is the proposed tax on unrealized gains calculated? 3. Assuming Bill Gates' Microsof stock increases by 10 pereent and his Davinci manuseript increases by 5.26 pereeut in 2023 , will he be liable for the unrealiodd gain tas? If so, how much? Bill Gates is one of the wealthiest individuals in the United States, with a carrent net worth estimated to be 121 billion dollars. (Hayes, 2022 ). The majority of his net worth was derived from his ownership in Microsoft Comptation. He owns approximately 1.3 percent of its shares currently valued at 20 billion dollars . Since his departure fromt Microsoft management in 2014 , he has diversified his investrnents to include other investments in other companies, real estate holdings and collectables, among other things. (Hayes, 2022) Much of Bill Gates' stockholdings are held in Cascade Investments, LLC, a wholly owned investment company. Its estimated current value is 35 billion dollars, (Hayes, 2022) He also has significant real estate holdings, including his Xanadu home in the Seattle area valued at 131 million dollars, a Wellington Flonida horse ranch valued at 8.7 million dollars, and the Grand,Bogae Caye Island near Belize, valued at 25 million dollars. (Hayes, 2022). Mr. Gates has invested in collectables, too, such as a Leonardo Davinci manuscript called Codex Leicester, valued at 31 mallion dollars and several paintingx, inelading Andrew Wyeth's "Distant Thunder" valued at 7 million dollars and Frederick Childe Hassam's "Room of Flowers" worth 20 million dollars. (Hayes, 2022). Assume Mr. Gates' portfolio of investments experiences the following results in 2023; - His tradeable Microsoft stock appreciates by 10 percent from its 2022 value of 20 billion dollars, based upon 2023 -ycar end New York Stock exchange values - The non-tradeable Davinci manuseript has not been revalued since 2022, when it carried a 31-million-dollar value. Hewever, under the Greenbook's guidelines, page 35, it will be revalued using the five-year Treasury interest rate plus two percent. The current five-year Treasury rale is 3.26, resuliing in an appreciation rate of 5.26 percete - Mr. Gates' 2023 regular tax liability is $240,000,000 (based on a 40% tax rate given 600 million dollars of regular taxable income). THE CASE DISCUSSION QUESTIONS Address the following questions 1. What will the proposed tax on unrealized gains apply to? 2. How is the proposed tax on unrealized gains calculated? 3. Assuming Bill Gates' Microsof stock increases by 10 pereent and his Davinci manuseript increases by 5.26 pereeut in 2023 , will he be liable for the unrealiodd gain tas? If so, how much