Thomas Dies in the Current Year and Has a Gross

Multiple Choice

Thomas dies in the current year and has a gross estate valued at $3,000,000.During his lifetime (but after 1976) Thomas had made taxable gifts of $400,000.The estate incurs funeral and administrative expenses of $100,000 and also pays off Thomas' debts which amount to $300,000.Thomas bequeaths $500,000 to his wife.What is the amount of Thomas' tax base,the amount on which the estate tax is computed?

A) $2,100,000
B) $2,500,000
C) $2,600,000
D) $3,400,000