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3. Shelly’s assets include money in the checking and savings
accounts, investments in stocks and mutual funds, personal property,
such as furniture, appliances, an automobile, coin collection and
jewelry. Shelly calculates that her total assets are $108,800. Her
current unpaid bills, including an auto loan, credit card balances, and
taxes total $16,300.
Calculate Shelly’s net worth.
4. Barry and his wife Mary have accumulated over $4 million during
their 45 years of marriage. They have three children and five
grandchildren.
A- How much money can Barry and Mary gift to their children in
2008 without any gift tax liability?
B- How much money can Barry and Mary gift to their grandchildren?
C- What is the total amount of estate removed from Barry and Mary’s
estate?
Ans.
5. Dave bought a rental property for $200,000 cash. One year later,
he sold it for $240,000.
A- What was the return on his $200,000 investment?
B- Suppose Dave invested only $20,000 of his own money and
borrowed $180,000 (interest free from his rich father). What was his
return on investment?
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BUSN 380 Week 7 Quiz