Banele had a taxable estate of $15.5 million when they died this year. Calculate the amount of estate tax due (if any) under the following alternatives.
a) Banele’s prior taxable gifts consist of a taxable gift of $1 million in 2005.
b) Banele’s prior taxable gifts consist of a taxable gift of $1.5 million in 2005.
c) Explain how the tax calculation would change if Banele made a $1 million taxable gift in the year prior to their death.