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USE THE FOLLOWING INFORMATION FOR PROBLEMS 9 THROUGH 16 An estate distributes an asset to its sole income beneficiary. The distribution was not a specific

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USE THE FOLLOWING INFORMATION FOR PROBLEMS 9 THROUGH 16 An estate distributes an asset to its sole income beneficiary. The distribution was not a specific bequest. The basis of the value is $5, asset to the estate is $1,000, and the asse's fair market 000. Distributable net income of the estate is $9,500. No other distributions are nor was an election made by the fiduciary with respect to this distribution. 9. The estate's distribution deduction, and the beneficianys taxable income, from the distribution is: a. $1,000. b. $4,000. c. $5,000 d. $9,500. The basis of the asset to the beneficiary after the distribution is: a. $1,000. b. $4,000. c. $5,000. d. $9,500 10. 11. Gain recognized to the estate due to the distribution is: a. SO0. b, $1,600 (after the 60% net long term capital gain deduction). C. $4,000. d. $5,000. the 12. An executor elected to recognize gain or loss on the distribution of an asset as if The estate's distribution deduction, and the property had been sold to the beneficiary. beneficiary's taxable income, from the distribution is: a. $1,000 b. $4,000. c. $5,000. d. $9,500. If the distribution was made in lieu of a specific bequest of $9,000 cash, the gain recognized to the estate due to the distribution, if the executor did not elect to recognize gain or loss on the distribution is: a. $0. b. $1,600 (after the 60% net long-term capital pin deduction). c $4,000. d. $5,000. 13. If the distribution was made in lieu of a specific bequest of $9,000 cash, the gain recognized by the benoficiary due to the distribution, if the executor did not elect to recognize gain or loss on the disribution is: a. b. $4,000. c. $5,000. d. $9,500. 14. 15. If the fair market value of the property is $500, rather than $5,000, the estates distribution deduction, and the beneficiary's taxable income, from the distribution lis: a. 500. b. $1,000. c $4,000. d. $5,000. e $9,500. 16. If the fair market value of the property was $5,000, but the distributable net income was only $400, the estate's distribution deduction, and the beneficiary's taxable income, from the distribution a. 400 b 500. C. $1,000. d. $4,000 e. $5,000

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