N1.Account Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor todistribute his cash and stock to his wife, Kaffie, and the real estate to his church, The First Church of Methodology. Theremainder of his assets were to be placed in trust for his three children. Tom's estate consisted of the following:Assets:Personal assetsCash and stockIntangible assets (film rights)Real estateLiabilities:MortgageOther liabilities.1,270,00025,700,00080,000,00016,700,000$ 123,670,000$$4,900,0005,800,00010,700,000 a. Tom made a taxable gift of $6.80 million in 2011. Compute the estate tax for Tom's estate. (Refer to Exhibit 25-1 and Exhibit 25-2)(Enter your answers in dollars, not millions of dollars.)Gross estateMarital DeductionCharitable DeductionDebtsTaxable EstateAdjusted taxable giftsCumulative taxable transfersTax on cumulative transfersCurrent tax on adjusted taxable gifts.Tentative estate taxApplicable credit (tax on $11.58 million)Estate Tax Due$ 123,670,00025,700,000(16,700,000)10,700,000$ 70,570,0006,800,000$ 77,370,000

When one person gives something to another person without taking money, is called a gift such as a…

lom Hruise was an entertainment executive who had a fatal accident on a film set. Tom's will directed his executor to distribute his cash and stock to his wife, Kaffie, and the real estate to his church, The First Church of Methodology. The remainder of his assets were to be placed in trust for his three children. Tom's estate consisted of the following: Assets: Personal assets Cash and stock Intangible assets (film rights) Real estate Liabilities: Mortgage Other liabilities 1,270,000 25,700,000 80,000,000 16,700,000 $ 123,670,000 $ 4,900,000 5,800,000 $ 10,700,000