Mr. Ito, an unmarried individual, made a gift of real estate to his son. Compute the amount subject to federal gift tax in each of the following situations:

1. The FMV of the real estate was $4.75 million, and the transfer was Mr. Itos first taxable gift.

2. The FMV of the real estate was $15 million, and the transfer was Mr. Itos first taxable gift.

3. The FMV of the real estate was $15 million. Two years ago, Mr. Ito made his first taxable gift: marketable securities with a $3 million FMV in excess of the annual exclusion.