Please help with the problem below.

timer Asked: Dec 6th, 2014

Question description

At the time of death on this year September 4, Kenneth owned the following assets.

Fair Market Value

City of Boston bonds 1,500,000

Stock in Brown Corporation 800,000

Promissory note issued by Brad (Kenneth’s son) 600,000

In October, the executor of Kenneth’s estate received the following: $120,000 interest on the City of Boston bonds (10,000 accrued since September 2) and a $7,000 cash dividend on the Brown stock (date of record was September 1). The declaration date on the dividend was August 12. The $600,000 loan was made to Brad in late 2010, and he used the money to create a very successful business. Kenneth forgave the note in his will.

What are the estate tax consequences of these transactions?

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