Jose dies in the current year and has a gross estate valued at $8,000,000.Over the past ten years Jose had made taxable gifts of $400,000.The estate incurs funeral and administrative expenses of $100,000 and also pays off Jose's debts which amount to $300,000.Jose bequeaths $500,000 to his wife.What is the amount of Jose's tax base,the amount on which the estate tax is computed?
A)$7,100,000
B)$7,500,000
C)$1,650,000
D)$2,050,000

Question

Quizplus · Accepted Answer

B)$8,000,000 - $100,000 funeral/administrative expense - $300,000 liabilities - $500,000 marital transfers = $7,100,000 taxable estate + $400,000 gifts = $7,500,000 tax base

Jose Dies in the Current Year and Has a Gross