Eric Juarez died in 2012, leaving an estate of $27,000,000. Eric's wife died in 2009. In 2009, Eric gave his son property that resulted in a taxable gift of $6,000,000 and upon which Eric paid $1,300,000 in transfer taxes. Eric had made no other taxable gifts during his life. Eric's will provided a charitable bequest of $900,000 to his church. Exhibits Tax schedules and credits Exhibit 15.7-Unified Credits and Applicable Exclusion Amounts for Estates and Gifts: Exhibit 15.8-Federal Unified Transfer Tax Rates: Year Unified Tax Credit- Estates Applicable Exclusion Amount- Estates Unified Tax Credit- Gifts Applicable Exclusion Amount -Gifts 2008 $780,800 $2,000,000 $345,800 $1,000,000 2009 $1,455,800 $3,500,000 $345,800 $1,000,000 2010 Estate tax repealed for $330,800 $1,000,000 2010 2011 $1,730,800 $5,000,000 $1,730,800 $5,000,000 2012 $1,772,800 $5,120,000 $1,772,800 $5,120,000 2013 $2,045,800 $5,250,000 $2,045,800 $5,250,000 2014 $2,081,800 $5,340,000 $2,081,800 $5,340,000 2015 $2,117,800 $5,430,000 $2,117,800 $5,430,000 2016 $2,125,800 $5,340,000 $2,125,800 $5,340,000 2017 $2,141,800 $5,490,000 $2,141,800 $5,490,000 2018 $4,417,800 $11,180,000 $4,417,800 $11,180,000 Source: Internal Revenue Service Exhibits - Tax schedules and credits Exhibit 15.7-Unified Credits and Applicable Exclusion Amounts for Estates and Gifts: Exhibit 15.8-Federal Unified Transfer Tax Rates: Taxable Estate Value Tentative Tax More Than But Not More Than Base Amount + Percent On Excess Over $0 10,000 $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. Source: Internal Revenue Code, Section 2001. Use the following worksheet to calculate the federal estate tax due on Eric Juarez's estate. (Hint: Enter a value of $0 for any line that does not apply. Use Exhibit 15.7 to determine the appropriate unified tax credit. Use Exhibit 15.8 to calculate the tentative tax.) Line Name: Eric Computation Item Computing Federal Estate Tax Due Date: 11/30/2012 Amount Total Amount 1 Gross estate 2 Subtract sum of: (a) Funeral expenses t $0.00 (b) Administrative expenses $0.00 (c) Debts $0.00 (d) Other expenses $0.00 Total: ($0.00) 3 Result: Adjusted gross estate 4 Subtract sum of: (a) Marital deduction $0.00 (b) Charitable deduction Total: 5 Result: 9 Add: 7 Result: 8 Compute: Taxable estate Adjusted taxable gifts (post-1976) Estate tax base Tentative tax on estate tax base ($ $ $ $ S 9 Subtract sum of: (a) Gift tax payable on post-1976 gifts $ (b) Unified tax credit $ Total: 10 Result: Total estate taxes 11 Subtract: Other credits 12 Result: Federal estate tax due $ ($0.00) $