Final answer:
Gerald Wilkins' net taxable estate is found by subtracting his debts from his assets. His assets total $1,089,750 and his debts are $200,500. The net taxable estate is thus $889,250, which is answer option e.
Step-by-step explanation:
The question is asking for Gerald Wilkins' net taxable estate. To calculate this, we need to add the value of his assets and then subtract the debts he owes.
Gerald's assets include his home worth $270,000, a car worth $16,750, investments worth $770,000, and other personal assets worth $33,000. To find the total value of his assets, we add these amounts together:
$270,000 + $16,750 + $770,000 + $33,000 = $1,089,750
Gerald's debts include a mortgage of $195,000 and a car loan of $5,500. Subtracting these debts from his total assets gives us his net taxable estate:
$1,089,750 - $195,000 - $5,500 = $889,250
The correct answer is e. $889,250, as this represents Gerald's net taxable estate after accounting for both his assets and debts.