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 $1,750,000 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 $5.4 million at his death. (Refer to Exhibit 25-1 and Exhibit 25-2.)

a. estate tax will be:

EXHIBIT 25-1 Unified Transfer Tax Rates Tax Base equal to or over Not over Tentative tax plus of amount over 10,000 18% 10,000 20,000 1,800 20 10,000 3,800 22 20,000 40,000 20,000 8,200 24 40,000 60,000 40,000 13,000 26 60,000 60,000 80,000 18,200 28 80,000 80,000 100,000 100,000 23,800 30 100,000 150,000 150,000 250,000 150,000 38,800 32 250,000 250,000 500,000 70,800 34 500,000 750,000 155,800 37 500,000 750,000 248,300 39 750,000 1,000,000 1,000,000 1,000,000 345,800 40