When Rajiv Nag died in 2012, he left an estate valued at $15,000,000. His trust directed distribution as follows: $300,000 in charitable deductions ($50,000 to the local hospital plus $250,000 to his alma mater), and the remainder to his four adult children. Death-related costs were $8,500 for funeral expenses, and $125,000 in administrative expenses ($60,000 paid to attorneys, $15,000 paid to accountants, and $50,000 paid to the trustee of his living trust. In addition, there were debts of $650,000. Use the following dropdown menus to obtain the relevant tax schedules and credits: Exhibits Tax schedules and credits Exhibit 15.7-Unified Credits and Applicable Exclusion Amounts for Estates and Gifts: Exhibit 15.8-Federal Unified Transfer Tax Rates Year 2008 Unified Tax Credit- Estates $780,800 Applicable Exclusion Amount- Estates Unified Tax Credit- Gifts Applicable Exclusion Amount -Gifts $2,000,000 $345,800 $1,000,000 2009 $1,455,800 $3,500,000 $345,800 $1,000,000 2010 Estate tax repealed for $330,800 $1,000,000 2010 2011 $1,730,800 $5,000,000 $1,730,800 $5,000,000 2012 $1,772,800 $5,120,000 $1,772,800 $5,120,000 2013 $2,045,800 $5,250,000 $2,045,800 $5,250,000 2014 $2,081,800 $5,340,000 $2,081,800 $5,340,000 2015 $2,117,800 $5,430,000 $2,117,800 $5,430,000 2016 $2,125,800 $5,340,000 $2,125,800 $5,340,000 2017 $2,141,800 $5,490,000 $2,141,800 $5,490,000 2018 $4,417,800 $11,180,000 1 $4,417,8001 $11,180,000 Exhibits Tax schedules and credits Exhibit 15.7-Unified Credits and Applicable Exclusion Amounts for Estates and Gifts: Exhibit 15.8-Federal Unified Transfer Tax Rates: Taxable Estate Value Tentative Tax On Excess Over More Than But Not More Than Base Amount + Percent $0 10,000 $0 10,000 20,000 1,800 20% $10,000 20,000 40,000 3,800 22% 20,000 40,000 60,000 8,200 24% 40,000 60,000 80,000 13,000 26% 60,000 80,000 100,000 18,200 28% 80,000 100,000 150,000 23,800 30% 100,000 150,000 250,000 38,800 32% 150,000 250,000 500,000 70,800 34% 250,000 500,000 750,000 155,800 37% 500,000 750,000 1,000,000 248,300 39 750,000 1,000,000 345,800 40 1,000,000 Source: Internal Revenue Code, Section 2001, Use the following worksheet to calculate the federal estate tax due on Rajiv Nag's estate. (Hint: Enter a value of $0 for any line that does not apply. Use Exhibit 15.7 to calculate the tentative tax. Use Exhibit 15.8 to determine the appropriate unified tax credit.) Computing Federal Estate Tax Due Name: Rajiv Nag Item Date: 11/30/2012 Amount Total Amount Line Computation 1 Gross estate 2 Subtract sum of: (a) Funeral expenses $ (b) Administrative expenses $ (c) Debts $ (d) Other expenses Total: Adjusted gross estate $0.00 S 3 Result: Subtract sum of: (a) Marital deduction $0.00 (b) Charitable deduction Total: 5 Result: 6 Add: 7 Result: 8 Compute: Taxable estate Adjusted taxable gifts (post-1976) Estate tax base Tentative tax on estate tax base $ S $0.00 S Subtract sum of: (a) Gift tax payable on post-1976 gifts $0.00 (b) Unified tax credit Total: 10 Result: Total estate taxes 11 Subtract Other credits ($0.00) 12 Result Federal estate tax due