Check my work Many years ago James and Sergio purchased property for $540,000. A
ID: 2529248 • Letter: C
Question
Check my work Many years ago James and Sergio purchased property for $540,000. Although they are listed as equal co- owners, Sergio was able to provide only $240,000 of the purchase price. James treated the additional $30,000 of his contribution to the purchase price as a gift to Sergio. If the property is worth $891,000 at Sergio's death, what amount would be included in Sergio's estate if the title to the property was tenants in common? What if the title was joint tenancy with right of survivorship? (Do not round intermediate colculations. Round your final answers to the nearest whole dollar amount.) 0.76 points to be included in Sergio's estate if Title to the property was tenants in common S 445 500 Title to the property were joint tenancy with right of surviworshipExplanation / Answer
If the title is held as joint tenancy with right of survivorship, Sergio would include the proportion of the value as the amount of the purchase price he initially provided. Sergio provided 4/9ths of the property price ($240/$540) = $891000 * 4/9 = $396000. So, his estate would include $3,96,000.