Required Information [The following information applies to the questions displayed below.] Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his wife, Kaffie, and the real estate to his church. The First Church of Methodology. The remainder of his assets were to be placed in trust for his three children. Tom's estate consisted of the following: Assets: Personal assets Cash and stock Intangible assets (film rights) Real estate $ 1,780, cee 24,300,eee 73,000,000 15,380, eee $ 114,380, eee Liabilities: Mortgage Other liabilities $ 3,580, eae 4,400,000 $ 7,980,00 a. Tom made a taxable gift of $5.40 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars, not millions of dollars.) $ Gross estate Marital Deduction Charitable Deduction 114,380.000 24,300.000 15.300.000 7.900.000 66.880.000 5.400.000 $ $ 72.280.000 Debts Taxable Estate Adjusted taxable gifts Cumulative taxable transfers Tax on cumulative transfers Current tax on adjusted taxable gifts Tentative estate tax Applicable credit Estate Tax Due EXHIBIT 25-1 Unified Transfer Tax Rates* Not Over Plus Tax Base Equal to or Over $ 0 10,000 $10,000 Tentative Tax $ 0 1,800 18% of Amount Over $ 0 10,000 20,000 20 20,000 40,000 3,800 22 20,000 8,200 24 40,000 60,000 60,000 80,000 100,000 40,000 60,000 26 13,000 18.200 80,000 28 80,000 150,000 23.800 30 100,000 100,000 150.000 250,000 38.800 32 150,000 250.000 500,000 70.800 34 750,000 155,800 37 500,000 750,000 250,000 500,000 750,000 1,000,000 39 248,300 345,800 1,000,000 40 1,000,000 *The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010. EXHIBIT 25-2 The Exemption Equivalent Estate Tax Year of Transfer 1986 Gift Tax $500,000 19871997 600.000 1998 625,000 1999 650,000 2000-2001 2002-2003 2004-2005 20062008 2009-2010* 675,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 5,120,000 5,250,000 5,340,000 5.430,000 2011 $500,000 600,000 625,000 650,000 675,000 1,000,000 1,500,000 2,000,000 3,500,000 5,000,000 5,120,000 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 2012 2013 2014 2015 2016 2017 2018 5,450,000 5,490,000 11,180,000 11,400,000 11,580,000 11,700,000 2019 2020 2021 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010