Required Information [The following information applies to the questlons displayed below] Tom Hrulse distribute his cash and stock to his witfe, 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 was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to Assets: Personal assets Cash and stock Intangible assets (Filn rights) Real estate 80,ee8 24,eee,eee 71,58e,eee 15,90e,00 s 111,390,00 Liabilities: Mortgage Other liabilities S3,2ee,908 4,100,000 57,3ee,0e0 a. Tom made a taxable gift of $8 million in 2011. Compute the estate tax for Tom's estate (Refer to Exhibn 25l and Exhibit 25-2) (Enter your answers in dollers, not millons of dollers.) 3 Answer is complete but not entirely correct a. Tom made a taxable gift of $8 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhbt 25:1 and Exhibrt 25-2) Enter your answers in dollars, not milllions of dollers.) 9 Answer is complete but not entirely correct. Gross estate Debts Adjustable gross estate 111.300.000 7.300.000 104.000,000 | 24.000.000 15.000.000 $ 85.000.000 8.000.000 73.000,000 Marital deduction Charitable deduction Taxable estate Adjusted taxable gifts Cumulative taxable transfers Current tax rates Tax on cumulative transfers Gift taxes psyable on adjusted caxable g fts at current rate Tentative estate ax Applicable gred t Gross estate tax 73.00o 000 C 1.200.000 s 29.145.800 2,117.000 63 3.945 800 EXHIBIT 25-1 Unified Transfer Tax Rates Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount 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 18% 20 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 50,000 250,000 500,000 750,000 1,000,000 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 24 26 28 30 32 34 37 39 40 The applicable credit and exemption is zero for estates that opted out of the estate tax in 2010 Year of Transfer Glit Tax Estate Tax 1986 s 500.000 S 500,000 1987-1997 1998 1999 2000-2001 2002-2003 2004-2005 2006-2008 600,000 600,000 625,000 625,000 650.000 675,000 1,000,000 1,000.000 1,000,000 1,000,000 5.000.000 650.000 675,000 1,000,000 1,500.000 2.000,000 3.500.000 5,000.000 2009-2010* 2011 5.120.000 5.120, 2012 2013 2014 2015 2016 5,250,000 5.340.000 5.430.000 5,450.000 5,490.000 11.130.000 5.250,000 5.340.000 5.430.000 5.450.000 5, 190.000 0 201
