Jose Dies in the Current Year and Has a Gross

question 40

Multiple Choice

Jose dies in the current year and has a gross estate valued at $8,000,000.During his lifetime (but after 1976) 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

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