When computing the federal estate tax liability in 2014,the maximum amount for a taxable estate (not tentative tax)that the unified credit for the current year will eliminate all of the tax is

Question

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The unified credit for the current year in 2014 was $2,081,800, meaning that the first $2,081,800 of an estate is exempt from federal estate tax. The federal estate tax rate in 2014 was 40%. Therefore, to calculate the maximum amount for a taxable estate that the unified credit will eliminate all of the tax, you would divide the credit amount by the tax rate: $2,081,800 ÷ 0.40 = $5,204,500. However, since the question is asking for the maximum amount for a taxable estate that the credit will eliminate all of the tax, we need to round up to the next closest whole number, which is $5,340,000, making choice C the correct answer.

When Computing the Federal Estate Tax Liability in 2014,the Maximum