8. Computing the federal transfer tax . Practice 1 When Bruce Armstrong died in 2012, he left an estate valued at $15,000,000. His trust directed distribution as follows: $300,000 in charitable deductions ($50,000 to the local hospital plus $250,000 to his alma mater), and the remainder to his four adult children. Death-related costs were $5,500 for funeral expenses, and 5125,000 in administrative expenses ($60,000 paid to attorneys, $15,000 paid to accountants, and $50,000 paid to the trustee of his living trust. In addition, there were debts of $650,000. Use the following droodown menus to obtain the relevant tax schedules and credits: Exhibits - Tax schedules and credits Ext 157-Federal United Transfer Tax Rates Exhibt 158 - United Credits and Applicable Exclusion Amounts for Estates and its Tentative Tax Taxable Estate Value More Than 30 Percent On Excess Over 20% 224 24% $10,000 20.000 40,000 10,000 20,000 40.000 60,000 80,000 100.000 150,000 250.000 500,000 But Not More Than 10,000 20,000 40.000 60,000 50.000 100,000 150,000 250,000 500,000 Base Amount 50 1,800 1,800 8.200 13,000 18,200 2).000 38,800 70,000 155,800 26% 28% 304 3255 3456 37% 60,000 30,000 100,000 150,000 250.000 500,000 Use the following worksheet and Exhibits:5.7 and 15.8 in your textbook to calculate the federal estate tax due on Bruce Armstrong's estate. (Hint: Enter a value of 50 for any line that does not apply.) Computing Federal Estate Tax Due Name: Bruce Armstrong Date: 11/30/2012 Line Total Amount Computation Item Amount Gross estate 2 Subtract sum of: (a) Funeral expenses 5 (b) Administrative expenses $ (c) Debts $ (8) other expenses $ Total: 1 Result: Subtract sum of: 5 5 Result: 6 Add: Adjusted gross estate (a) Marital deduction (b) Charitable deduction Total: Taxable estate Adjusted tacable gifts (post-1976) Estate tax base Tentative tax on estate tax base "(a) Gift tax payable on post-1976 gifts (b) Unified tax credit Total: 5 7 Result: Compute: Subtract sum of: S 10 11 Result: Subtract: Result: Total estate taxes Other credits Federal estate tax due S 12 s Use thibit 15.7 to calculate the tentative Un to determine the sorprended tax credit