Roland had a taxable estate of $16.0 million when he died this year. Calculate the amount of estate tax due (if any) under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.)

a. Rolands prior taxable gifts consist of a taxable gift of $1 million in 2005.

b. Rolands prior taxable gifts consist of a taxable gift of $1.5 million in 2005.

c. Roland made a $1 million taxable gift in the year prior to his death.

EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 S 500,000 500,000 1987-1997 600,000 600,000 1998 625,000 650,000 675,000 625,000 650,000 675,000 1999 2000-2001 2002-2003 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 5,450,000 5,490,000 11,180,000 The applicable credit and exemption is zero for 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 2004-2005 2006-2008 2009-2010 2011 2012 2013 2014 2015 2016 2017 2018 taxpavers who opt out of the estate tax in 2010. EXHIBIT 25-1 Unified Transfer Tax Rates* Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over $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 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 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 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 The applicable credit and exemption Is zero for estates that opted out of the estate tax in 2010