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0 Required information [The following information applies to the questions displayed below] Tom Hruise was an entertainment executive who had a fatal accident on a

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0 Required information [The following information applies to the questions displayed below] Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his wife, Kaffie, and the real estate to his church, The First Church of Methodology. The remainder of his assets were to be placed in trust for his three children. Tom's estate consisted of the following: Assets: Personal assets $ 1,216,666 Cash and stock 25,666,666 Intangible assets (film rights) 76,566,666 Real estate 16,666,666 $ 118,716,666 Liabilities: Mortgage $ 4, 266, 666 Other liabilities 5,166,666 $ 9,366,666 \\. a. Tom made a taxable gift of $6.10 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 251 and Exhibit 252.) (Enter your answers in dollars, not millions of dollars.) EXHIBIT 25-1 Unified Transfer Tax Rates* Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over 0 $10,000 $ 0 18% $ 0 10,000 20,000 1,800 20 10,000 20,000 40,000 3,800 22 20,000 40,000 60,000 8,200 24 40,000 60,000 80,000 13,000 26 60,000 80,000 100,000 18,200 28 80,000 100,000 150,000 23,800 30 100,000 150,000 250,000 38,800 32 150,000 250,000 500,000 70,800 34 250,000 500,000 750,000 155,800 37 500,000 750,000 1,000,000 248,300 39 750,000 1,000,000 345,800 40 1,000,000 *The applicable credit and exemption is zero for estates that opted out of the estate tax in 2010.EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $500,000 $500,000 1987-1997 600,000 600,000 1998 625,000 625,000 1999 650,000 650,000 2000-2001 675,000 675,000 2002-2003 1,000,000 1,000,000 2004-2005 1,000,000 1,500,000 2006-2008 1,000,000 2,000,000 2009-2010* 1,000,000 3,500,000 2011 5,000,000 5,000,000 2012 5,120,000 5,120,000 2013 5,250,000 5,250,000 2014 5,340,000 5,340,000 2015 5,430,000 5,430,000 2016 5,450,000 5,450,000 2017 5,490,000 5,490,000 2018 11,180,000 11,180,000 2019 11,400,000 11,400,000 *The applicable credit and exemption is zero for taxpayers who opt out of the estate tax in 2010.9 Answer is not complete. 35 118,710,000 0 (9,300,000) 0 109,410,000 0 (25,000,000) 0 (16,000,000) 0 $ 68,410,000 0 6,100,000 a $ 74,510,000 0 Gross estate Debts Adjustable gross estate Marital deduction Charitable deduction Taxable estate Adjusted taxable gifts Cumulative taxable transfers Current tax rates % Tax on cumulative transfers 29,804,000 9 Gift taxes payable on adjusted taxable gifts at current rate Tentative estate tax Applicable credit Gross estate tax _- _- _- _- - ! - - - - _

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