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Roland had a taxable estate of $17.0 million when he died this year. Calculate the amount of estate tax due (if any) under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars and not in millions of dollars.)

a. Rolands prior taxable gifts consist of a taxable gift of $1 million in 2005. ESTATE TAX DUE?

b. Rolands prior taxable gifts consist of a taxable gift of $1.5 million in 2005. ESTATE TAX DUE?

c. Roland made a $1 million taxable gift in the year prior to his death ESTATE TAX DUE?

EXHIBIT 25-1 Unified Transfer Tax Rates* Plus 18% 20 22 24 26 Tax Base Equal to or 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 Not Over $10,000 20,000 40,000 60.000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 Tentative Tax $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70.800 155,800 248,300 345,800 28 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 30 32 34 37 39 40 *The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010. EXHIBIT 25-2 The Exemption Equivalent Year of Transfer 1986 1987-1997 1998 1999 2000-2001 2002-2003 2004-2005 2006-2008 20092010* 2011 2012 2013 2014 2015 Gift Tax $500,000 600,000 625.000 650.000 675,000 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 11,400,000 11,580,000 Estate Tax $500,000 600,000 625.000 650,000 675,000 1,000,000 1,500,000 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 11,180,000 11,400,000 11,580,000 2016 2017 2018 2019 2020

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