Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his wife, Kaffie, the real estate to his church, The First Church of Methodology. and the remainder of his assets were to be placed in trust for his three children. Tom's estate consisted of the following: Assets: Personal assets 1,050,000 24, 100, o00 72,000,000 15,100,000 112,250, 000 Intangible assets (rs1m rights) Real estate Liabilities: Mortgage Other 11abilities $3,300,000 4,200,000 7,500, 000 a. Tom (Enter your answers in dollars, not millions of dollars.) made a taxable gift of $5.20 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit 25-2) XHIBIT 25-1 Unified Transfer Tax Rates Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over 0 10,000 20,000 40,000 60,000 80.000 100,000 150,000 250,000 500,000 750,000 1,000,000 $10,000 20,000 40,000 60,000 80,000 00,000 150,000 250,000 500,000 750,000 1,000,000 18% 20 0 10,000 1,800 3,800 8,200 13,000 18.200 23,800 38,800 70,800 155,800 248,300 345,800 20,000 24 26 28 30 32 34 37 39 40 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 EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 1987-1997 1998 S 500.000 S 500.000 600.000 625.000 650,000 675.000 1.000.000 1500.000 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 11180.000 600.000 625.000 650,000 675,000 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 1999 2000-2001 2002-2003 2004-2005 2006-2008 2009-2010* 2011 2012 2013 2014 2015 2016 2017 2018 taxpayers who opt out of the estate tax in 2010. Gross estate Debts Adjustable gross estate Marital deduction Charitable deduction Taxable estate Adjusted taxable gifts Cumulative taxable transfers Current tax rates Tax on cumulative transfers Gift taxes payable on adjusted taxable gifts at current rate Tentative estate tax Applicable credit Gross estate tax