QUESTION: 141

The practical effect/s of Special Valuation Rules is/ are:

Cumulative dividends or distribution rights
Non-voters having voting rights
Flexible and optional redemption rights
Non-lapsing conversion rights

Answer(s): A,D

There is an additional valuation rule, which requires that the appraiser determine whether any of the extraordinary payment rights, if exercised in conjunction with any qualified distribution rights, would lower the total value of the preferred security.

Lower of
Separate Command
Mandatory redemption rights
Lower in

Answer(s): A

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QUESTION: 143

There are some factors that determine whether the buy-sell agreement is conclusively binding for estate tax purposes. Which of the following is/are out of those factors?

The agreement must restrict the transfer of the securities to the buy-sell price during the owner's life as well as at death.
There must be a valid business purpose for establishing the agreement
The value may not reflect those typical of arm's length transactions in the subject company's industry
The value established in the agreement must have been an adequate and fair price at the time the agreement was executed

Answer(s): A,B,D

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QUESTION: 144

With respect to the contents, must include:
1. The date of the appraisal
2. The date of the transfer
3. The purpose of the appraisal
4. The description of the property
5. A description of the assumption utilized
6. A description of the appraisal process employed, including the valuation method utilized
7. A description of any hypothetical conditions considered etc.

Applicable valuation restrictions
Appraisal report
Three-year gift tax statute of limitations
Lapse of certain rights

Answer(s): B

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QUESTION: 141

QUESTION: 142

QUESTION: 143

QUESTION: 144

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