Under Rowena's will, Mandy (Rowena's sister) inherits her property. One year later, Mandy dies.

Based on the following independent assumptions, what is Mandy's credit for the tax on prior transfers?

Credit for Tax on Prior Transfers

Interval between Deaths		Credit Allowed
Within 2 years		100%
Within 3 to 4 years		80%
Within 5 to 6 years		60%
Within 7 to 8 years		40%
Within 9 to 10 years		20%

a. The estate tax attributable to the inclusion of the property in Rowena's gross estate is $700,000, and the estate tax attributable to the inclusion of the property in Mandy's gross estate is $800,000.

Mandy's credit for the tax on prior transfers is $______________

b. The estate tax attributable to the inclusion of the property in Rowena's gross estate is $1,200,000, and the estate tax attributable to the inclusion of the property in Mandy's gross estate is $1,100,000.

Mandy's credit for the tax on prior transfers is $_________

c. Express your computations for parts (a) and (b) as Microsoft Excel commands. (Choose One)

CREDIT=(MIN(MANDYTAX,ROWENATAX))+LOOKUP(YRSBETWEEN,YRSARRAY,RATESARRAY)

CREDIT=(MIN(MANDYTAX,ROWENATAX))LOOKUP(YRSBETWEEN,YRSARRAY,RATESARRAY)

CREDIT=(MIN(MANDYTAX,ROWENATAX))LOOKUP(YRSBETWEEN,YRSARRAY,RATESARRAY)

CREDIT=(MIN(MANDYTAX,ROWENATAX))LOOKUP(YRSBETWEEN,YRSARRAY,RATESARRAY)

d. How do your answers to the above questions change if Mandy died seven years after Rowena? The tax credit percentage used would be _______%