John dies with an estate valued at $3 million which is comprised of the following

assets: $1 million home; $1 million IRA; and $1 million of cash. Johns wife is the

owner and the beneficiary of a $1 million insurance policy on Johns life. The ASPCA is

the beneficiary of Johns IRA. Johns will provides that upon his death, of his assets

will pass to his wife, with the remaining assets passing to the ASPCA. John dies in 2006.

What is the value of the marital deduction allowed to Johns estate?

A. Zero

B. $1,000,000

C. $1,500,000

D. $2,000,000

What is the value of Johns charitable deduction?

A. Zero

B. $1,000,000

C. $1,500,000

D. $2,000,000

What credits are available to reduce Johns estate tax liability?

I. Marital deduction.

II. Charitable deduction.

III. Administration expenses.

A. I and II

B. III only

C. I, II and III

D. None of the above