Required information [The following information applies to the questions displayed below.] Roland had a taxable estate of $16.0 million when he died this year. Required: Calculate the amount of estate tax due (if any) under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars and not in millions of dollars.) a. Roland's prior taxable gifts consist of a taxable gift of $1 million in 2005. Estate tax due b. Roland's prior taxable gifts consist of a taxable gift of $1.5 million in 2005. Estate tax due c. Roland made a $1 million taxable gift in the year prior to his death. Estate tax due EXHIBIT 25-1 Unified Transfer Tax Rates* Not Over Tentative Tax Plus of Amount Over 18% $ 0 20 10,000 22 24 26 Tax Base Equal to or Over $ 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 $10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 28 $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 30 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 32 34 37 39 40 *The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010. EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $500,000 1987-1997 600,000 1998 1999 $500,000 600,000 625,000 650,000 675,000 1,000,000 1,500,000 2,000,000 625,000 650,000 675,000 1,000,000 1,000,000 2000-2001 2002-2003 2004-2005 2006-2008 1,000,000 2009-2010* 3,500,000 2011 1,000,000 5,000,000 5,120,000 5,250,000 5,000,000 5,120,000 2012 2013 2014 5,340,000 2015 2016 2017 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 11,580,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 11,580,000 11,700,000 2018 2019 2020 2021 11,700,000 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010