Tom Hruise was an entertainment executive who had a fatal accident on a film set. Toms 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. Toms estate consisted of the following:

Assets:

Personal assets

$

800,000

Cash and stock

24,000,000

Intangible assets (film rights)

71,500,000

Real estate

15,000,000

$

111,300,000

Liabilities:

Mortgage

$

3,200,000

Other liabilities

4,100,000

$

7,300,000

a. Tom made a taxable gift of $8 million in 2011. Compute the estate tax for Toms estate. (Refer to Exhibit 25-1 and Exhibit 25-2.)

Gross estate
Debts
Adjustable gross estate
Marital deduction
Charitable deduction
Taxable estate
Adjusted taxable gifts
Cumulative taxable transfers
Current tax rates
Tentative estate tax
Unified credit
Estate tax due