Chase owned 80% of the stock of Lucci Corporation, with the remaining 20% held by various family members. Over the past four years, Lucci Corporation has generated average net profits of $150,000, and on the date of Chase's death, the book value of the corporation's stock was $400,000.
Assume that the IRS identifies 6% as an appropriate rate of return.
Using these facts, total value of the Lucci stock would be determined to be $fill in the blank 1
which includes $fill in the blank 2
as computed goodwill. Therefore, IRS would probably contend that the stock should be included in Chase's gross estate at $fill in the blank 3
.