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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

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1. (TCOs 6 and 7) The Capitalist Mutual Fund's portfolio is valued at
$48 million. The fund has liabilities of $4 million, and the investment