Todd died on September 1, 2018. He made the following transfers during his life. How much is included in Todd's gross estate?

1. A gift of $200,000 to Todd's daughter on April 20, 2016. Todd paid $54,000 in gift tax.

2. A gift of his residence to his girlfriend, retaining the right to live in the home for the rest of his life. He bought the home for $1,200,000. It was worth $1,500,000 when he gave it to her, and was worth $1,500,000 at his death.

3. Transferred ownership of life insurance on Todd's life to his business partner on January 2, 2010. His business partner is the beneficiary. The death benefit is $500,000, the interpolated terminal reserve value on January 2, 2010 was $75,000, and Todd retained no incidents of ownership after the transfer.

$1,554,000

$1,500,000

$575,000

$54,000

$1,054,000