Jack is single and he made his first taxable gift of $1,000,000 in 2008. Jack made additional gifts in 2009, at which time he gave $1,784,000 to each of his three children and an additional $1,000,000 to State University (a charity). The annual exclusion in 2009 was $13,000. Recently Jack has been in poor health and would like you to estimate his estate tax should he die this year. Jack estimates his taxable estate (after deductions) will be worth $5.57 million at his death. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars and not in millions of dollars.)

what is the estate tax? why is it not $1955520?

EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 1987-1997 1998 S 500,000 S500,000 600.00 600,000 625,000 650,000 675,000 1,000,000 625,000 1999 2000-2001 2002-2003 2004-2005 2006-200S 2009-2010* 650.00 675,000 1.000,000 1,000,000 500,000 1,000,000 2.000,000 1,000,000 3.500,000 5,000,000 5,000,000 5,120,000 5.250,000 5,250,000 5,340,000 5.340,000 5,430,000 5.430,000 5.450,000 5.450,000 5,490,000 5.490,000 2011 2012 2013 2014 5.120,000 2015 2016 2017