Jose Dies in the Current Year and Has a Gross

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