69) In 2002, Gert made a $5,000,000 taxable gift. The 2002 gift tax on $5,000,000 was $2,275.800. Gert was entitled to a unified credit of $345,800, resulting in a gift tax of $1,193,000. The marginal tax rate in 2002 is 50%. For the year of Gert's death (2020), the marginal rate for $5,000,000 of transfers is 40%. the tax on $5,000,000 would equal $1,945,800 before subtracting any credit. In arriving at Gert's estate tax liability, what is the amount subtracted for 2002 gift taxes paid?
69) In 2002, Gert made a $5,000,000 taxable gift. The 2002 gift tax on $5,000,000 was $2,275.800. Gert was entitled to a unified credit of $345,800, resulting in a gift tax of $1,193,000. The marginal tax rate in 2002 is 50%. For the year of Gert's death (2020), the marginal rate for $5,000,000 of transfers is 40%. the tax on $5,000,000 would equal $1,945,800 before subtracting any credit. In arriving at Gert's estate tax liability, what is the amount subtracted for 2002 gift taxes paid?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:69) In 2002, Gert made a $5,000,000 taxable gift. The 2002 gift tax on $5,000,000 was
$2,275.800. Gert was entitled to a unified credit of $345,800, resulting in a gift tax of
$1,193,000. The marginal tax rate in 2002 is 50%. For the year of Gert's death (2020), the
marginal rate for $5,000,000 of transfers is 40%. the tax on $5,000,000 would equal $1,945,800
before subtracting any credit. In arriving at Gert's estate tax liability, what is the amount
subtracted for 2002 gift taxes paid?
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