Dave L. Jones, a calendar-year taxpayer using the cash method of accounting, was scared to death on Halloween night, October 31, 2019.

Under the terms of the will, Dave devised and bequeathed all of the property he owned to his wife, Hildegard, except for a cash gift of $100,000 to the School of Accountancy at Louisiana Tech University, a condominium in Cancun, Mexico, to his beloved son, Billy Bob, a condominium in West Palm Beach, Florida, to Lee Ray Brown, and a

$20,000 cash gift to Peggy Sue Elmore (who befriended him late in life).

A review of the executor’s files and discussions with Mr. Jones's attorney reveal the following facts:

a. Mr. Jones's assets at (1) date of death and (2) six months later are as follows:

b. On November 7, 1976, Mr. Jones, pursuant to the legal firm’s suggestion of utilizing the annual exclusion and the specific exemption, gave $33,000 to his son Billy Bob. (Note that a $6,000 adjustment to the unified credit is required because of this transaction.)

c. Mr. Jones has made annual gifts of the exact annual exclusion amount to his son and each ofh is grandchildren each year (including 2019) since 1985. Other than these gifts and the one above, he made no gifts during his life.

d. Dividends of $2 per share were declared on the West Lumber Co. stock on October 1, 2019, but were not paid until November 15, 2019. Assume Mr.
Jones was alive on the date of record.

e. Interest of $6,500 accrued on the savings account at date of death.

f. Fees:

g. Mortgage on personal residence, United Financial Mortgage Corp., 10 percent, $50,000.
h. Debts:

j. A proviso in the will provided that the marital deduction for property passing to the wife shall not be reduced for death taxes, foreign death taxes, and funeral and administrative expenses.
k. The executor has decided to take all administrative expenses on the estate return.
l. Assume the executor elected to value the assets in the gross estate at their date of death values.

Required: Compute the net estate tax payable (note that the amount paid to Mexico is the amount of the foreign tax credit).

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Real Estate Personal residence Cancun condominium West Pair Beachcommum Stocks and Bonds Ford Moto end 60 bonds a Interest accrued on Ford Motor Co. bonds from July 1, 2019, to October 31, 2019 Littleton Telepmone Co common snarestrated over stock the counter $10 per share Octobe 3 2019 and 323ion Apr 30 2020 West Lumber Co., traded NYSE 5,000 shares common stock $100 per share on October 31, 2019, and $50 per share on April 30, 2020 Cash Checking Account No. 23-000, First National Bank of Greenville Money Market Savings Account No 1-23456 Beaver Run Savings & Loan Life Insurance Policy No 1 provided for $100 000 payable to wife witino incidents of ownership Policy No. 2 provided for $100,000 to wife, listed as owner under state law, but Dave retained the power to change the beneficiary Other Assets 1959 White Cadillac El Dorado Convertible, red interior with bobbing dog in rear window Civil war memorabilia 5 carat diamond ring, blue-white perfect Miscellaneous personal effects (clothing and shoes) Miscellaneous household goods (dishes, pots and pans, plants, silverware, and tools) Furniture Oriental rugs Fair Market Value 10/31/19 $ 500 000 7,000,000 $20000 72.000 2.000 500.000 15,100 275 000 100 000 100,000 20,000 30.000 50,000 6.800 5,000 25.000 18,000 4/30/20 $ 500 000 3,450,000 $52510001 TS 000 2,000 20.000 250.000 15,100 275 000 100 000 100.000 20,000 10,000 50,000 6.800 5,000 25,000 18,000