The following unmarried individuals died in 2016. The estate of John Lexington has a taxable value of $4,720,000. The estate of Dorothy Alexander has a taxable value of $5.0 million. The estate of Scotty Fitzgerald has a taxable value of $5.7 million. None of these individuals made any taxable gifts during their lifetimes. Which of the following statements is true?

Multiple Choice

• Only Fitzgeralds estate will have to pay federal estate taxes.

• Only the estates of Alexander and Fitzgerald are large enough to necessitate the payment of estate taxes.

• None of these estates is large enough to necessitate the payment of estate taxes.

• All three of the estates will have to pay federal estate taxes.