1. WHO WANTS $200 DOLLARS?!?! I WILL DONATE WAY MORE THEN $8.00 IF SOMEONE IS WILLING TO HELP ME WITH THIS PROJECT. THIS IS ONE QUESTION OUT OF 19. IF YOU CAN PROVE, OR HAVE SOME SORT OF SOURCES SHOWING ME YOU KNOW WHAT YOU'RE DOING WE CAN MAKE A PAYPAL TRANSFER. HOW DOES $10.00 A QUESTION SOUND? I WILL ROUND UP AND MAKE IT $200.00. EMAIL BACK ASAP.
2. Calculate the taxable gifts made by Jim and Pam for the years 2000 - 2016. Where appropriate, explain any exemptions or exclusions that applied. Calculate gift tax due in the same years. You must calculate the gift tax amount prior to the application of any applicable credit amount. For example, you cannot simply tell me that the gift tax is $0 because Jim and Pam have not used their applicable credit amounts and expect to receive full credit. You must go through all the steps of each gift tax calculation to achieve full credit. (Value - 10 points)

Jim and Pam have made the following lifetime transfers:

• In 2000, Pam loaned $9,500 to Angela for the purchase of a used
• station wagon. Pam did not charge Angela interest on the loan.
• Jim and Pam paid $7,000 in 2002, $14,000 in each of the years 2003-
• 2005, and $8,000 in 2006 directly to Texas A&M University for
• Angela to achieve a degree in education.
• Jim and Pam paid $320,000 in the years 2009-2012 directly to
• Cecilia to reimburse her for tuition she paid to Harvard University to
• achieve a degree in biology (assume $80,000 per year).
• Jim and Pam gave $95,000 in 2014 to Phillip to open a comic book business - which failed within 6 months - in lieu of sending him to
• college.
• Jim and Pam paid $150,000 to Texas Children's Hospital for an
• experimental treatment for Emma in 2008.
• In 2007, Jim gave Angela $100,000 of his separate property as a
• wedding gift.
• In 2009, Jim gave his friends Dwight and Andy $50,000 each of
• separate property to start a paper company.
• In 2007, Pam gave her mother $200,000 of her separate property as a
• birthday gift.
• Hurricane Heloise struck the coast of Texas in August 2016. Jim and
• Pam gave $250,000 to the American Red Cross to assist in Hurricane
• Sandy relief efforts in September 2016.
• In 2016, Jim gave a paid up whole life insurance policy with a death
• benefit of $100,000 (owned as Jim's separate property) to the American Cancer Society, a public charity, to support the search for the cure for cancer.
• Note: Jim and Pam did not agree to split any of the separate property gifts. At this time, Jim and Pam do not have a valid will.

STATEMENT OF FINANCIAL POSITION OF JIM AND PAM:

ASSETS

LIABILITIES AND NET WORTH

Cash/Cash Equivalents

Liabilities

JTROS Cash

$ 628,000

Current Liabilies

Total Cash/Cash Equivalents

$ 628,000

W Credit Card 1

$ 47,000

CP Credit Card 2

$ 148,000

Invested Assets

H Credit Card 3

$ 8,200

CP Grillenium Falcon

$ 18,000,000

CP Credit Card 4

$ 39,200

H Inherited Stock Portfolio

$ 785,000

Total Current Liabilities

$ 242,400

TC Quarterhorses

$ 650,000

H Whole Life Insurace Policy

$ 540,000

W Inherited Stock Portfolio

$ 2,450,000

Long-Term Liabilities

Total Investments

$ 22,425,000

CP Mortgage - Primary

$ 565,000

CP Mortgage - Lake House

$ 168,000

Personal Use Assets

CP Loan - Boat

$ 51,000

CP Primary Residence

$ 1,273,000

H Loan - Auto 3

$ 48,500

JTROS Lake House

$ 540,000

Total Long-Term Liabilities

$ 832,500

CP Duplex

$ 240,000

CP Boat

$ 85,000

CP Auto 1

$ 71,500

Total Liabilities

$ 1,074,900

W Auto 2

$ 40,800

H Auto 3

$ 96,000

Total Personal Use

$ 2,346,300

Net Worth

$ 24,324,400

Total Assets

$ 25,399,300

Total Liabilities and Net Worth

$ 25,399,300

Notes to Financial Statements:

1. Assets are stated at fair market value (rounded to even dollars).

2. Liabilities are stated at principal only (rounded to even dollars).

3. The adjusted basis of "The Grillenium Falcon" is $1,800,000.

4. Inherited Stock Portfolios have children designated as beneficiaries.

5. Jim's whole life insurance policy has a death benefit of $2,000,000 and is

solely owned by Jim. The number in the table represents the cash

surrender value of the policy. The designated beneficiary is Pam. 6. PropertyOwnership:

a. CP-communityproperty(JimandPamhaveacommunity property interest)

1. TC - tenants in common (Jim and Pam are equal owners in all property owned as tenants in common).
2. JTROS-Jointtenancywithrightofsurvivorship(JimandPamare joint tenants of all property JTROS).
3. H - Jim's separate property.
5. W-Pam'sseparateproperty.