Exercise $18-28($Algorithmic$)($LO$.7)$

Donald dies this year, and under his will, a trust is created in the amount of $$6,686,000$ with the following provisions: life estate to Cindy $($Donald$\text{'}$s spouse$)$ and remainder to their children. His will also passes land $($cost basis of $$236,000$ and fair market value of $$708,000)$ to the Salvation Army for the site of a new homeless housing project.

Question Content Area

a$.$ If a QTIP election is made, how much will these transactions reduce Donald's gross estate to arrive at the taxable estate?

b$.$ If a QTIP election is not made, how much will these transactions reduce Donald's gross estate to arrive at the taxable estate?