Mr. Chuck Rainy dies on May 21, 2015, and leaves his entire estate, with a fair value of $7,200,000 (after settlement of all estate expenses and liabilities) to be equally divided among his sole surviving family members, his daughters Emily and Laura, and his son Tom.
REQUIRED:
Calculate the federal tax on Mr. Rainy's estate. (You may ignore any state-level inheritance taxes and assume that federal taxes are paid at the 40 percent rate.)