PFIN 5th Edition by Randall Billingsley,Lawrence Gitman,Michael Joehnk

Exercise 9

Calculating federal transfer tax on estate. Henry died in 2015, leaving an estate of $23 million. Henry's wife died in 2010. In 2009, Henry gave his son property that resulted in a taxable gift of $3 million and upon which Henry paid $885,000 in transfer taxes. Henry had made no other taxable gifts during his life. His will provided a charitable bequest of $1 million to his church. Determine the federal transfer tax on Henry's estate.