Chapter 16, Problem 16.7DMP

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In 2010 Casey made a taxable gift of $6.9 million to both Stephanie and Linda (a total of $13.8 million in taxable gifts). Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) Note: Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable. a. This year Casey made a taxable gift of $1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made. Gift tax due - $0 Unused applicable credit - ? b. This year Casey made a taxable gift of $16.9 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made. Gift tax due - ? Unused applicable credit - $0 c. This year Casey made a gift worth $16.9 million to Stephanie. Casey married Helen last year, and they live in a common-law state. The 2010 gift was the only other taxable gift Casey or…