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Posted: June 15th, 2022
A father and son have been farming land owned by the father for the past 12 years.
A father and son have been farming land owned by the father for the past 12 years. Just prior to his death, thefather was offered $900,000 for his farm because of its possible use as a shopping center. The son would liketo continue to farm the land if it can be included in his father’s estate at its current use value. Additional factsare:1.Average annual gross rentals from nearby farms of similar acreage are $36,000.2.Average annual state and local real estate taxes on the farm are $4,000.3.The interest rate for loans from the Federal Land Bank is 8 percent.For federal estate tax purposes, the farm method valuation formula would result in a current use value for thefarm ofA. $600,000B. $300,000C. $500,000D. $400,000Don’t just give me the answer. I know the answer. I need help writing my essay – research paper write down the explanation and full calculations. Don’t just try to earn the fast money.
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