In 2010 Casey made a taxable gift of $6.8 million to both Stephanie and Linda (a total of $13.6 million in taxable gifts). Calculate the amount of gift tax due this year and Caseys unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.)

a. This year Casey made a taxable gift of $1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made.

Gift tax due ______

Unused Exemption Equivalent _________

b. This year Casey made a taxable gift of $16.8 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made.

Gift tax due ______

Unused Exemption Equivalent _________

c. This year Casey made a gift worth $16.8 million to Stephanie. Casey is married to Helen in a common-law state, and the 2010 gift was the only other taxable gift he or Helen has ever made. Casey and Helen elect to gift split.

Casey's gift tax due _______

Casey's unused exemption equivalent __________

Helen's gift tax due _____________

Helen's unused exemption equivalent ____________

EXHIBIT 25-1 Unified Transfer Tax Rates* Plus 18% 20 22 24 26 Tax Base Equal to or Over $ 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 Not Over $10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 Tentative Tax $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38.800 70,800 155,800 248,300 345,800 28 30 32 34 37 39 40 of Amount Over S 0 10,000 20,000 40.000 60,000 80,000 100,000 150.000 250,000 500,000 750,000 1,000,000 *The applicable credit and exemption are 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 19871997 600,000 600,000 1998 625.000 625,000 1999 650,000 650,000 2000-2001 675,000 675,000 20022003 1,000,000 1,000,000 2004-2005 1,000,000 1,500,000 20062008 1,000,000 2,000,000 20092010* 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 2020 11,580,000 11,580,000 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010