Answer:
$4,620
Explanation:
Calculation for the income and expenses are reported on Jack's estate tax return.
First step is to calculate the net value of the items that was included as income
Using this formula
Net value=Total income in respect of a decedent- Business Expenses amount owed
Let plug in the formula
Net value= $20,000-$5,000
Net value=$15,000
Last step is to calculate the income and expenses that are reported on his estate tax return
Based on the above calculation the net value was the amount of $15,000 which means that standard taxable estate amount after credit will be $4,840. Hence the Estate tax deduction will be calculated as:
Estate tax return deduction=($15,000-$4,840) -$4,840
Estate tax return deduction= $9,460 −$4,840
Estate tax return deduction=$4,620
Therefore the income and expenses that are reported on Jack's estate tax return will be $4,620