show your work in excel please

8. Computing the federal transfer tax - Practice 1 Aa Aa When Edwin Poole died in 2012, he left an estate valued at $15,000,000. His trust directed distribution as follows: $300,00 charitable deductions ($50,000 to the local hospital plus $250,000 to his alma mater), and the remainder to his four adult children. Death-related costs were $8,500 for funeral expenses, and $125,000 in administrative expenses ($60,000 paid to attorneys, $15,000 paid to accountants, and $50,000 paid to the trustee of his living trust. In addition, there were debts of $650,000 Use the following worksheet and Exhibits 15.7 and 15.8 to calculate the federal estate tax due on Edwin Poole's estate. En value of $0 for any line that does not apply. Computing Federal Estate Tax Due Date: 11/30/2012 Name: Edwin Poole Line Computation Item Amount Total Amount Subtract sum of: Gross estate (a) Funeral expenses (b) Administrative expenses (c) Debts (d) Other expenses Total: 3 4 Result: Subtract sum of: Adjusted gross estate (a) Marital deduction (b) Charitable deduction Total: Result: Add: Result: Compute: Subtract sum of: Taxable estate Adjusted taxable gifts (post-1976) Estate tax base Tentative tax on estate tax basea (a) Gift tax payable on post-1976 gifts (b) Unified tax creditb Total: Result: Subtract: Result: Total estate taxes Other credits Federal estate tax due 12 aUse Exhibit 15.7 to calculate the tentative tax. buse Exhibit 15.8 to determine the appropriate unified tax credit. Exhibit 15.7 Federal Unified Transfer Tax Rates Taxable Estate Value Tentative Tax More Than But Not More Than Base Amount + Percent On Excess Over $0 $0 10,000 20,000 40,000 60,000 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 1,800 3,800 8,200 13,000 18,200 20% 22% 24% 26% 28% $10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 23,800 80,000 100,000 150,000 250,000 500,000 30% 38,800 70,800 155,800 32% 34% 37% Exhibit 15.8 Unified Credits and Applicable Exclusion Amounts for Estates and Gifts X Unified Tax Credit-Estates Applicable Exclusion Amount-Estates Unified Tax Credit-Gifts Applicable Exclusion Amount-Gifts Year 2006 2007 2008 2009 $2,000,000 $2,000,000 $2,000,000 $3,500,000 $780,800 $780,800 $780,800 $1,455,800 Estate tax repealed for 2010 $1,730,800 $1,772,800 $2,045,800 $345,800 $345,800 $345,800 $345,800 $330,800 $1,730,800 $1,772,800 $2,045,800 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $5,000,000 $5,120,000 $5,250,000 2010 2011 2012 2013 $5,000,000 $5,120,000 $5,250,000 8. Computing the federal transfer tax - Practice 1 Aa Aa When Edwin Poole died in 2012, he left an estate valued at $15,000,000. His trust directed distribution as follows: $300,00 charitable deductions ($50,000 to the local hospital plus $250,000 to his alma mater), and the remainder to his four adult children. Death-related costs were $8,500 for funeral expenses, and $125,000 in administrative expenses ($60,000 paid to attorneys, $15,000 paid to accountants, and $50,000 paid to the trustee of his living trust. In addition, there were debts of $650,000 Use the following worksheet and Exhibits 15.7 and 15.8 to calculate the federal estate tax due on Edwin Poole's estate. En value of $0 for any line that does not apply. Computing Federal Estate Tax Due Date: 11/30/2012 Name: Edwin Poole Line Computation Item Amount Total Amount Subtract sum of: Gross estate (a) Funeral expenses (b) Administrative expenses (c) Debts (d) Other expenses Total: 3 4 Result: Subtract sum of: Adjusted gross estate (a) Marital deduction (b) Charitable deduction Total: Result: Add: Result: Compute: Subtract sum of: Taxable estate Adjusted taxable gifts (post-1976) Estate tax base Tentative tax on estate tax basea (a) Gift tax payable on post-1976 gifts (b) Unified tax creditb Total: Result: Subtract: Result: Total estate taxes Other credits Federal estate tax due 12 aUse Exhibit 15.7 to calculate the tentative tax. buse Exhibit 15.8 to determine the appropriate unified tax credit. Exhibit 15.7 Federal Unified Transfer Tax Rates Taxable Estate Value Tentative Tax More Than But Not More Than Base Amount + Percent On Excess Over $0 $0 10,000 20,000 40,000 60,000 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 1,800 3,800 8,200 13,000 18,200 20% 22% 24% 26% 28% $10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 23,800 80,000 100,000 150,000 250,000 500,000 30% 38,800 70,800 155,800 32% 34% 37% Exhibit 15.8 Unified Credits and Applicable Exclusion Amounts for Estates and Gifts X Unified Tax Credit-Estates Applicable Exclusion Amount-Estates Unified Tax Credit-Gifts Applicable Exclusion Amount-Gifts Year 2006 2007 2008 2009 $2,000,000 $2,000,000 $2,000,000 $3,500,000 $780,800 $780,800 $780,800 $1,455,800 Estate tax repealed for 2010 $1,730,800 $1,772,800 $2,045,800 $345,800 $345,800 $345,800 $345,800 $330,800 $1,730,800 $1,772,800 $2,045,800 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $5,000,000 $5,120,000 $5,250,000 2010 2011 2012 2013 $5,000,000 $5,120,000 $5,250,000