Jose Dies in the Current Year and Has a Gross

question 68

Multiple Choice

Jose dies in the current year and has a gross estate valued at $13,000,000 in 2019.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)$12,100,000
• B)$12,500,000
• C)$700,000
• D)$1,100,000