This year Nathan transferred $1 million to an irrevocable trust established for the benefit of his nephew. The trustee is directed to accumulate income for the next 5 years before distributing the trust corpus to Nathan's nephew. In past years Nathan has made taxable gifts of $6 million and used all unified credit. What is the amount of gift tax, if any, must Nathan remit in 2017? Ignore the annual exception amount of $15,000.

A). 159,500

B). 155,800

C). 155,450

D). Zero- there is a $10 Million exemption equivalent

E) None of these. The tax amount can not be estimated without the use of a tax rate schedule.

NOTE: D is not the correct answer. Please explain your answer.