Peter Co. acquired 40% of Sara Inc's voting common stock on January 2, year 1 for $400,000. The carrying amount of Sara's net assets at the purchase date totaled $900,000. Fair values equaled carrying amounts for all items except equipment, for which fair values exceed carrying amounts by $100,000. The equipment has a five-year life. During year 1, Sara reported net income of $150,000. What amount of income from this investment should Peter report in the year 1 income statement

In 2015, lori assigned a paid-up whole life insurance policy to an irrevocable life insurance trust (ilit) for the benefit of her three children. the ilit contained a crummey provision for the benefit of each child. at the time of the transfer, the whole life insurance policy was valued at $200,000, and since lori had not made any other taxable gifts during her lifetime, she did not owe any gift tax. lori died in 2016, and the face value of the whole life insurance policy of $2,000,000 was paid to the ilit. regarding this transfer, how much is included in lori’s gross estate at her death?