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Use Worksheet 15.2. When Russell Hypes died unmarried in 2012, he left an estate valued at...

Use Worksheet 15.2. When Russell Hypes died unmarried in 2012, he left an estate valued at $6,200,000. His trust directed distribution as follows: $5,000 to the local hospital, $75,000 to his alma mater, and the remainder to his three adult children. Death-related costs and expenses were $10,900 for funeral expenses, $50,000 paid to attorneys, $7,000 paid to accountants, and $25,000 paid to the trustee of his living trust. In addition, there were debts of $125,000. Use Worksheet 15.2 and Exhibit 15.7 and Exhibit 15.8 to calculate the federal estate tax due on his estate. Round your answer to nearest whole dollar.

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Expert Solution

We have to calculate the federal estate tax due on his estate. Round your answer to nearest whole dollar.

S.No Particulars Item Amount$) Total amount
1. Gross estate 6,200,000
2. a)Funeral expenses 10,900
b)Paid to attomeys 50,000
c)Paid to accountants 7,000
d) Paid to trustee 25,000
e) Debts 125,000
Total 10,900+7000 +125,000 142,900
3. Result Adjusted gross estate 6,200,000-142,900 = 6,057,100
4. Subtract sum of a) Marital deduction 0
b) Charitable deduction hospitals 5000+75000 = 80,000
Total 80,000
5. Result Taxable estate 6057100-80000 = 5,977,100
6. Add: Adjustable taxable gifts 0
7. Result Estate tax base 5,977,100
8. compute Terrative tax on estate tax base 2,951,477
9. Subtract sum of a) Gift tax payable on post 0
b)United tax credits 1772800
total 1772800
10. Result Total estate taxes 1175677
11.. Subtract other credits 0
12. Result Federal estate tax due 1175677

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