A is corrent. The requirement is to determine the amount that should be included in JeMeace’s gross estate with respect to the land. In general, the gross estate includes the fair market value of all property in which the decedent had an ownership interest at time of death. In the case of property held in joint tenancy that was acquired by purchase by other than spouses, the decedent’s estate must include the fair market value of the property multiplied by the percentage of total cost furnished by the decedent. In the present case, JeMeace furnished $10,000/$40,000 = 1/4 of the cost of the land. Therefore, JeMeace’s estate should include 1/4 x $280,000 = $70,000 with respect to the land.
B is incorrect. 1/4 × $280,000 = $70,000 would be included.
B is incorrect. 1/4 × $280,000 = $70,000 would be included.
D is incorrect. 1/4 × $280,000 = $70,000 would be included.
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