Eric dies in the current year and has a gross estate valued at $6,500,000.The estate incurs funeral and administrative expenses of $100,000 and also pays off Eric's debts which amount to $250,000.Eric bequeaths $600,000 to his wife.Eric made no taxable transfers during his life.Eric's taxable estate will be

Question

Quizplus · Accepted Answer

The taxable estate is calculated as follows:
Gross estate:  $6,500,000
(-) Funeral and administrative expenses: $100,000
(-) Debts: $250,000
(-) Marital deduction: $600,000
= $5,550,000
Therefore, the taxable estate is $5,550,000, which is option B.

Eric Dies in the Current Year and Has a Gross