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Franz established an irrevocable trust to provide income to his mother for life and the remainder interest to his son. He transferred $400,000 to the

Franz established an irrevocable trust to provide income to his mother for life and the remainder interest to his son. He transferred $400,000 to the trust today. The IRS Section 7520 rate is 5% and his mother is age 82. What is the amount of the total taxable gifts that Franz will report on his gift tax return this year?

A. $100,084

B. $114,084

C. $285,916

D. $386,000

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