Problem 14-60 (LO 14-4) 13 Jones is seriously ill and has $6 million of property that he wants to leave to his four children. He is considering making a current gift of the property (rather than leaving the property to pass through his will). Assuming any taxable transfer will be subject to the highest transfer tax rate. (Refer to Exhibit 25-1 and Exhibit 25-2.) points Required: a. Determine how much gift tax Jones will owe if he makes the transfers now. b. If he makes a current gift, how much estate tax will Jones save if he dies after three years, during which time the property appreciates to $6.8 million? Print (For all requirements, enter your answers in dollars and not in millions of dollars.) Amount of gift tax Amount of estate tax savings EXHIBIT 25-1 Unified Transfer Tax Rates * Tentative Tax Plus of Amount Over 18% $ 0 Tax Base Equal to or Over $ 0 10,000 20,000 Not Over $10,000 20,000 40,000 $ 0 1,800 20 10,000 3,800 22 20,000 60,000 8,200 24 40,000 26 28 40,000 60,000 80,000 100,000 150,000 250,000 500,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 13,000 18,200 23,800 38,800 30 60,000 80,000 100,000 150,000 250,000 500,000 32 70,800 34 155,800 37 39 750,000 248,300 750,000 1,000,000 345,800 40 1,000,000